Porsche shares fell more than seven percent on Monday after the company confirmed delays in its electric vehicle plans. The automaker had previously warned that weaker demand would reduce its 2025 earnings.
Volkswagen shares also fall
Parent company Volkswagen saw its stock drop by over seven percent on the same day. It announced billions in spending to refresh Porsche’s line-up, raising investor concerns. The decline highlights how European carmakers face pressure from Chinese rivals and a slowing economy.
Profit forecast lowered
Porsche cut its profit margin target from up to 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 delayed. Petrol models will remain in production longer despite Europe’s 2035 combustion ban.
Pushback on emissions rules
Manufacturers are urging European regulators to ease strict climate targets. Porsche shifted plans, announcing that its next SUV line will launch only with petrol and hybrid engines. Panamera and Cayenne models will also continue to offer combustion options into the 2030s.
Rivals under pressure
BMW and Mercedes-Benz are cutting costs to stay competitive. Chinese brands like BYD and XPeng are engaged in a domestic price war. Average car prices in China have dropped 19 percent over two years, now around 165,000 yuan, or £17,150.
Retreat from electric ambitions
Porsche’s latest statement signals a step back from its earlier EV 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 expected.
