Porsche Shares Slide as EV Delays Hit 2025 Profit Outlook
Porsche’s stock fell more than 7% on Monday after the luxury carmaker warned that delays in its electric vehicle (EV) rollout would cut into its 2025 earnings.
The German automaker, known for its iconic sports cars, said it would slow its transition to EVs amid weakening demand. Parent company Volkswagen also saw shares drop over 7% after confirming it will invest billions to overhaul Porsche’s model lineup.
Industry experts say the struggles highlight the mounting pressure on European automakers, who face stiff competition from Chinese EV makers and weaker global demand for luxury cars.
Porsche cut its projected profit margin from up to 7% to just 2% or lower. The company pointed to challenges including rising US import tariffs, a downturn in China’s luxury market, and a slower-than-expected transition to electric mobility.
Combustion Engines to Stay Longer
Porsche confirmed it will delay the launch of several new EV models and extend the production of petrol-powered cars, despite the EU’s 2035 deadline to phase out new combustion vehicles.
In a major shift, the brand announced that its upcoming SUV lineup—once planned as fully electric—will instead launch with combustion engine and plug-in hybrid versions. Flagship models such as the Panamera and Cayenne will also continue to be offered with petrol and hybrid engines well into the 2030s.
European Carmakers Under Pressure
The move comes as European manufacturers push regulators to relax emissions targets, arguing that current goals are unrealistic. Meanwhile, rivals BMW and Mercedes-Benz have already begun slashing costs to stay competitive.
Competition from China remains fierce, with brands like BYD and XPeng engaging in aggressive price wars that have driven down average car prices by nearly 19% in two years. At around 165,000 yuan (£17,150; $23,190), Chinese EVs are significantly cheaper than many European luxury models.
Porsche, which unveiled its first electric concept car—the Mission E—nearly a decade ago, now appears to be scaling back its electrification goals to balance consumer demand with profitability.