Porsche’s stock dropped more than 7% on Monday after warning that delays in its electric vehicle rollout will hit 2025 earnings.
The German carmaker said it will slow its shift to electric cars as demand weakens, while continuing to rely on its petrol-powered sports models.
Shares of parent company Volkswagen also fell over 7% after announcing plans to spend billions on revamping Porsche’s vehicle line-up.
The setbacks highlight the broader challenges facing European manufacturers, who are under pressure from slowing economies and growing competition from Chinese carmakers.
On Friday, Porsche cut its projected profit margin from up to 7% to just 2% or lower. It cited US import tariffs, a slump in China’s luxury market, and delays in the transition to electric mobility as key pressures.
The company confirmed that it will delay new EV launches and extend production of combustion engine models, even as Europe pushes ahead with a 2035 ban on new petrol and diesel cars.
Executives across the industry have called for this target to be relaxed, saying it is unrealistic under current conditions.
Porsche also announced a change in strategy, revealing that a new line of sport utility vehicles, once planned as fully electric, will instead be released with combustion and hybrid engines. Current models such as the Cayenne and Panamera will continue to offer non-electric versions well into the next decade.
Other luxury carmakers, including BMW and Mercedes-Benz, are cutting costs to keep pace with market shifts. Meanwhile, Chinese brands like BYD and XPeng are intensifying competition by driving down prices, with the average car price in China falling about 19% in the past two years.
