Porsche stock has fallen by over 7% after concerns over delays in electric car production in a major blow to the German marque. Porsche stock was down 7.3% in Frankfurt, while parent company Volkswagen also dropped 7% after the EV concerns came to light.
The reaction came as Porsche confirmed it was slowing down its electric vehicle development due to a weaker demand for EV products. The German marque confirmed the launch of its newest EVs had been delayed with the lifespan of combustion engine models extended. Porsche confirmed that some of their top-selling models such as the Panamera and Cayenne will be sold as a combustion or plug-in hybrid model “well into the 2030s”.
Oliver Blume, Porsche CEO, stressed the change of plans was set to meet “customer requirements” and would “strengthen market position”
Oliver explained: “These decisions build on the previously announced initiatives and help us to achieve a very balanced portfolio. This increases our flexibility and strengthens our position in a currently highly volatile environment.
“With a convincing mix of combustion engines, plug-in hybrids and battery-electric vehicles, we want to meet the entire range of customer requirements. In the medium term, this approach is intended to support our business model and strengthen our market position.”
Porsche confirmed that the rescheduling of electric vehicles will necessitate depreciation and provisions which are expected to impact the 2025 operating profit. The company suggests that as much as €1,8billion (£1.5billion) in operating profits could be lost in the 2025 financial year.
Against this background, the company has decided to adjust the forecast for the 2025 financial year. Porsche is now predicting a slightly positive return on sales of up to 2%, down on the previous forecast of between 5 to 7%.
Meanwhile, the German marque pointed the blame at “considerable additional burdens” as playing a part. This included the impact of new US import tariffs and the decline in the Chinese luxury market as key reasons behind the re-evaluation.
Dr Jochen Breckner, Member of the Executive Board for Finance and IT at Porsche AG explained: “With this clear plan, we are recalibrating the company for long-term success in a world with challenging conditions.
“We recognize that these strategic investments weigh on our short-term financial results – but they are essential. The measures will sharpen our brand identity and make our products even more desirable and our company even more resilient.”
Express.co.uk has contacted Porsche for comment.
