Porsche stock fell more than seven percent on Monday after the company confirmed setbacks in its electric vehicle plans. The automaker had already warned that weaker demand would hurt its 2025 earnings.
Volkswagen also under pressure
Parent company Volkswagen saw its shares drop by over seven percent on the same day. It pledged billions to refresh Porsche’s line-up, unsettling investors. The decline highlights how European carmakers face intense competition from Chinese rivals and a slowing economy.
Profit forecast lowered
Porsche cut its profit margin target from as high as seven percent to two percent or less. It cited US tariffs, declining luxury sales in China, and slower EV adoption. Executives confirmed that several electric models will be postponed. Petrol models will remain in production longer despite Europe’s 2035 combustion ban.
Manufacturers challenge regulations
Carmakers are pressing European regulators to ease strict emissions targets. Porsche shifted its plans, announcing that its next SUV line will launch only with petrol and hybrid engines. Panamera and Cayenne models will also continue offering combustion options well into the 2030s.
Competition intensifies
BMW and Mercedes-Benz are cutting costs to stay competitive. Chinese brands like BYD and XPeng are engaged in a fierce price war. Average car prices in China have dropped 19 percent over two years, now around 165,000 yuan, or £17,150.
Step back from electric ambitions
Porsche’s latest statement signals a retreat from its earlier electric vision. Ten years ago, the company unveiled the Mission E concept as a symbol of its future. Today, it admits the transition will take far longer than originally planned.
