Porsche shares dropped 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 hit its 2025 earnings.
Volkswagen shares also fall
Parent company Volkswagen saw its stock decline by over seven percent on the same day. It pledged billions to refresh Porsche’s line-up, raising investor concerns. The drop highlights the pressures European carmakers face from Chinese competitors and a slowing economy.
Profit forecast cut
Porsche lowered its profit margin outlook 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 several electric models will be delayed. Petrol models will remain in production longer despite Europe’s 2035 combustion ban.
Automakers push for regulatory relief
Manufacturers are urging European authorities to ease strict emissions targets. Porsche shifted plans, announcing 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 grows sharper
BMW and Mercedes-Benz are cutting costs to remain 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, now around 165,000 yuan, or £17,150.
Electric ambitions slow
Porsche’s latest update 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.
