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.<\/p>\n
Caught between electrification and its iconic petrol-powered sports cars, the German firm said it will slow its push for EVs as demand weakens.<\/p>\n
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.<\/p>\n
The companies’ struggles reflect the challenges for European manufacturers, who are faced with intense competition from Chinese rivals<\/a> and a slowing economy that’s dampening demand for luxury cars.<\/p>\n Porsche said in a statement on Friday that it has reduced its projected profit margin from up to 7% to 2% or less.<\/p>\n 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.<\/p>\n The company also said it would delay the launch of its newest EVs and that it will extend production of combustion engine models, even as the European market faces a 2035 deadline to ban the sale of new petrol and diesel cars<\/a>.<\/p>\n Industry executives have urged the authorities to relax that target, arguing it is not feasible.<\/p>\n In a strategic shift, Porsche said an upcoming line of sport utility vehicles, originally planned as fully electric, will now launch exclusively with combustion engines and plug-in hybrid options.<\/p>\n Current models like the four-door Panamera and Cayenne will continue to be available with non-electric options well into the 2030s, it added.<\/p>\n Luxury carmakers BMW and Mercedes-Benz have also been slashing costs to keep up with rivals.<\/p>\n