Porsche Shares Drop 7% as EV Rollout Delays Slash Profit Outlook; Volkswagen Warns of €5.1B Hit
- SAUDI ARABIA BREAKING NEWS
- Sep 23
- 2 min read
Frankfurt, Sept 23, 2025 (Saudi Arabia Breaking News) – Porsche shares fell more than 7% on Monday after the German sports carmaker warned that delays in its electric vehicle (EV) rollout would weigh heavily on profits this year, underscoring challenges facing Europe’s auto industry as it adapts to shifting global demand.
The company cut its 2025 profit margin forecast to no more than 2%, down from a previously guided 5% to 7%, citing weaker demand in China, higher U.S. tariffs, and the decision to push back new EV launches. Porsche said the delay, part of a broader product realignment, would reduce its operating profit by up to 1.8 billion euros ($1.9 billion) this year.
Parent company Volkswagen, which owns 75.4% of Porsche, also revised its outlook, warning it would take a 5.1 billion euro ($6 billion) hit from the overhaul and cutting its margin forecast to 2% to 3% from 4% to 5%. Volkswagen shares were down 7.5%, their steepest drop since 2023.
Analysts said the decision reflected broader industry headwinds as price wars and slowing economic growth in China erode demand for high-end electric vehicles.
Profitability Under Pressure
Porsche, which had targeted a long-term return on sales of over 20% at the time of its listing three years ago, posted an 18% margin in 2023 and 14% in 2024. It now aims for a 10–15% margin in the medium term, but analysts remain cautious.
Bernstein noted that despite billions of euros invested in electrification, Porsche has yet to produce a credible challenger to Tesla. “It will take time and money to reset the product programme to provide the flexibility and drive-train choices that its customers are demanding,” the brokerage said.
Resetting Strategy
A local stock trader described Porsche’s shift as a correction of its “mistake” in becoming too dependent on EVs. Analysts at Jefferies said the outlook cut — Porsche’s third this year — may be the last, but warned of potential brand and product cycle challenges.
The problems have intensified calls from shareholders and unions for Volkswagen CEO Oliver Blume, who also heads Porsche, to step down from one of his dual roles.
The European Union’s planned 2035 ban on new combustion engine cars adds further uncertainty. Industry executives have pressed Brussels to reconsider, arguing that sluggish EV demand makes the target increasingly unrealistic.
