Porsche shares tumble after pushing back EV rollout, cutting outlook

Investing.com -- Shares in Porsche (ETR:P911_p) sank nearly 7% in early Frankfurt trading on Monday after the German sports carmaker delayed the rollout of some electric models and cut its 2025 profitability outlook due to weakening demand.

Volkswagen, which owns 75.4% of Porsche , and holding company Porsche SE (ETR:PSHG_p), Volkswagen’s largest shareholder, fell more than 5% each. 

On Friday, Porsche said it would postpone the launch of certain all-electric models and now expects its profit margin this year to peak at 2%, compared with a previous range of 5–7%. The delay is expected to hit Porsche’s operating profit by up to 1.8 billion euros in 2025, the company said. 

Volkswagen warned it would take a 5.1 billion euro ($6 billion) charge from the changes and lowered its profit margin guidance to 2–3% from 4–5%. Porsche SE also cut its forecast for profit after tax.

Porsche also adjusted its automotive EBITDA margin outlook to 10.5–12.5%, down from 14.5–16.5%.

“We are seeing massive changes within the automotive environment,” said CEO Oliver Blume, who heads both Porsche and Volkswagen, on a call with analysts and journalists.

He pointed to a sharp decline in demand for high-end EVs. “We have made key strategic decisions. Now it’s time to put them into action. It’s going to be a tough and long road, and it will demand our full focus and strong effort.”

The delays underscore pressure in its two most important markets, the U.S. and China, where falling prices and trade barriers have weighed on demand.

Porsche added that a new SUV positioned above the Cayenne would initially be released with combustion and hybrid versions instead of an all-electric model. Production of current internal combustion and hybrid models such as the Panamera will also be extended into the 2030s.

Blume said he is relying on greater flexibility from the European Union regarding its target of a 100% reduction in CO2 emissions for new cars and vans by 2035.