Porsche shares dropped more than seven percent on Monday after the company delayed its electric rollout. The sports carmaker had already warned that weaker demand will weigh on 2025 earnings.
Volkswagen shares tumble
Parent company Volkswagen also fell by more than seven percent on the same day. It announced billions in new spending to update Porsche’s line-up, rattling investors. The double decline shows how European manufacturers are squeezed by Chinese rivals and a sluggish economy.
Outlook downgraded
Porsche cut its profit margin forecast from as high as seven percent to two percent or less. It blamed US tariffs, weaker Chinese luxury sales and slower EV adoption. Managers confirmed that new electric launches will be postponed. Petrol models will remain in production longer, despite Europe’s 2035 combustion ban.
Pushback against rules
Car companies want European regulators to ease climate targets they see as unworkable. Porsche shifted course and will launch its next SUV range only with petrol and hybrid engines. The Panamera and Cayenne will also continue to offer combustion options well into the 2030s.
Global competition intensifies
BMW and Mercedes-Benz are slashing costs to keep pace with rivals. Chinese makers like BYD and XPeng are engaged in a price war. Average car prices in China have dropped 19 percent in two years, to about 165,000 yuan, or £17,150.
Retreat from bold promises
Porsche’s latest statement marks a step back from its electric ambitions. A decade ago, it introduced the Mission E concept as a showcase of its future. Now, the firm concedes the transition will take much longer than expected.
