Porsche shares dropped more than seven percent on Monday after the company announced setbacks in its electric vehicle plans. The carmaker had already warned that weaker demand would hurt its 2025 earnings.
Volkswagen also slides
Parent company Volkswagen saw its shares fall by over seven percent on the same day. It pledged billions to refresh Porsche’s line-up, worrying investors. The decline underscores the challenges European automakers face from Chinese competitors and a slowing economy.
Profit outlook reduced
Porsche cut its profit margin forecast from as high as seven percent to two percent or less. It cited US tariffs, declining luxury demand in China, and slower EV adoption. Executives confirmed that several electric models will be postponed. Petrol models will continue production longer despite Europe’s 2035 combustion ban.
Carmakers push back on rules
Manufacturers are urging European regulators to ease strict emissions targets. Porsche shifted plans, announcing its next SUV line will launch only with petrol and hybrid engines. The Panamera and Cayenne will also continue offering combustion options well into the 2030s.
Competition heats up
BMW and Mercedes-Benz are trimming costs to stay competitive. Chinese brands like BYD and XPeng are engaged in a price war. Average car prices in China have dropped 19 percent over two years, to around 165,000 yuan, or £17,150.
Electric ambitions slowed
Porsche’s latest statement shows a retreat from its bold EV goals. Ten years ago, the company unveiled the Mission E as a symbol of its future. Today, it admits the transition will take much longer than originally planned.
