Porsche stock plunged more than seven percent on Monday after the company announced delays in its electric rollout. The carmaker had warned earlier that slowing demand would cut into its 2025 earnings.
Volkswagen follows downward trend
Parent company Volkswagen also saw shares drop by over seven percent on the same day. It committed billions to overhaul Porsche’s model range, sparking investor concern. The fall highlights how European carmakers struggle with Chinese rivals and weak economic conditions.
Profit margins cut back
Porsche slashed its profit margin forecast from as high as seven percent to two percent or less. It blamed US import tariffs, weaker luxury sales in China and sluggish EV growth. Executives confirmed EV launches will be postponed. Petrol models will stay longer in production despite Europe’s 2035 combustion ban.
Push for looser rules
Carmakers are urging European authorities to relax strict climate targets. Porsche shifted direction, deciding its next SUV line will launch only with petrol and hybrid options. Panamera and Cayenne models will continue offering combustion engines into the 2030s.
Rising competition in China
BMW and Mercedes-Benz are also cutting costs to handle market pressure. Chinese brands like BYD and XPeng are locked in a price war. Car prices in China have dropped by around 19 percent in two years, now averaging 165,000 yuan, or £17,150.
A slower road to electrification
Porsche’s latest move shows retreat from its earlier electric ambitions. Ten years ago, it unveiled the Mission E concept as its electric showcase. Now, the company admits the transition will take much longer than expected.
