Porsche’s stock tumbled by more than 7% on Monday after warning last week that delays in its electric vehicle (EV) rollout will dent the carmaker’s 2025 earnings.
Caught between electrification and its iconic petrol-powered sports cars, the German firm said it will slow its push for EVs as demand weakens.
Shares of its parent Volkswagen also fell by more than 7% on the same day after saying it will spend billions to overhaul Porsche’s line-up of vehicles.
The companies’ struggles reflect the challenges for European manufacturers, who are faced with intense competition from Chinese rivals and a slowing economy that’s dampening demand for luxury cars.
Porsche said in a statement on Friday that it has reduced its projected profit margin from up to 7% to 2% or less.
It cited the “US import tariffs, the decline in the Chinese luxury market, and the slowdown in the ramp-up of electric mobility” among its challenges.
The company also said it…
