Porsche Shares Slide as EV Plans Hit the Brakes

Porsche shares took a sharp turn on Monday, plunging more than 7%, after the luxury automaker announced delays in its electric vehicle (EV) rollout that are set to squeeze 2025 earnings.

The German icon, known for balancing cutting-edge innovation with the legacy of its petrol-powered sports cars, revealed it is slowing its EV drive amid waning global demand. The ripple effect was immediate—shares of parent company Volkswagen also sank over 7% after confirming it would pour billions into reshaping Porsche’s vehicle line-up.

This stumble underscores a broader struggle for Europe’s auto giants, who are grappling with fierce competition from Chinese EV makers and a cooling global economy that’s weighing on luxury demand.

On Friday, Porsche trimmed its expected profit margin from as high as 7% down to just 2%—or possibly lower. The company blamed U.S. import tariffs, a slump in China’s luxury market, and slower-than-expected momentum in electric mobility. In response, Porsche will push back the launch of its newest EVs and extend the life of its combustion engine models, even as Europe marches toward a 2035 ban on new petrol and diesel cars.

Automakers across the continent have been lobbying regulators to soften emissions targets, warning that current rules are unrealistic. Porsche is now pivoting its strategy: an upcoming SUV line, initially envisioned as fully electric, will instead debut with combustion and plug-in hybrid versions. Fan favorites like the Panamera and Cayenne will also remain available in non-electric formats well into the next decade.

The company’s recalibration mirrors cost-cutting moves by fellow luxury brands BMW and Mercedes-Benz, who are also striving to stay competitive. Meanwhile, Chinese automakers such as BYD and XPeng are intensifying the global EV race, fueling a domestic price war that has dragged down average car prices in China by nearly 19% over the past two years.

For Porsche, the decision marks a striking pause in its EV ambitions. A decade has passed since it unveiled its first electric concept car, the Mission E—and while its electrification journey isn’t over, the road ahead looks far bumpier than expected.