Porsche Shares Take a Hit: What the EV Rollout Delay Means for Investors

Porsche’s stock dropped over 7% recently after the company warned that delays in its electric vehicle (EV) rollout could hurt its earnings in 2025. The iconic carmaker is trying to balance its shift towards electric cars while still producing its beloved petrol-powered models. As it slows its EV push, demand seems to be weakening.

Volkswagen, Porsche’s parent company, also saw a similar drop in shares, signaling worries about the future. Both companies are facing tough competition from Chinese manufacturers during a time when the economy is slowing down and luxury car demand is softening.

According to a recent statement from Porsche, its projected profit margin has been revised down from a potential 7% to about 2% or less. Several challenges contribute to this adjustment. These include U.S. import tariffs, a decrease in demand in the Chinese luxury market, and obstacles in increasing electric mobility.

Moreover, Porsche announced delays in launching its new EVs. The company will continue producing combustion engine models even as Europe plans to ban the sale of new petrol and diesel cars by 2035. In this context, it’s interesting to note that European manufacturers have been pushing back on emission targets, arguing that these goals are unrealistic.

In a significant change, Porsche is shifting the launch of its new sport utility vehicles (SUVs). Instead of being fully electric, these models will initially come with combustion engines and plug-in hybrids. Classics like the Panamera and Cayenne will still offer non-electric options, likely for years to come.

Luxury car brands like BMW and Mercedes-Benz are also feeling the pressure, as competition intensifies. They, too, are cutting costs to remain relevant against rising Chinese brands such as BYD and XPeng, which are actively engaged in a price war in the domestic EV market.

Recent estimates suggest that car prices in China have dropped about 19% over the last two years, with the average car now costing around 165,000 yuan (about $23,190). This drop puts additional pressure on international brands that are already struggling to keep up in a challenging market.

Porsche’s recent statements show that while it once sought to lead in electric innovation—having revealed its first electric concept car, the Mission E, a decade ago—it is now slowing its pace. The journey to electrification is proving more complex than anticipated, and the balancing act between tradition and innovation is more crucial than ever.



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