Last week, the German car giant dropped a bombshell that sent its stock tumbling. They're pushing back their big electric vehicle plans.
It all unfolded on September 19, when Porsche's bosses laid it out in a Frankfurt press call. CEO Oliver Blume, who also heads parent company Volkswagen, said straight up that demand for fancy battery-powered rides has cooled off fast.
China's huge market prices have nosedived 19% in two years, making it tough to sell high-end stuff. Add in U.S. tariffs jacking up costs, and suddenly, full-speed EVs don't look so smart. So, they're delaying launches for models like a new all-electric SUV above the Cayenne. Instead, that one's coming first with gas engines and plug-in hybrids.
On Monday, September 22, Porsche shares cratered more than 7% in Frankfurt trading, the worst drop ever for the brand. Volkswagen's stock took a similar hit, down over 7%, with the group facing a whopping €5.1 billion bill to rework the lineup.
Profits for 2025? Slashed to a measly 2% margin from 5-7%. It's like the whole industry's slamming on the brakes. Chinese rivals like BYD are flooding the field with cheap EVs, leaving European luxury brands scrambling.
Porsche's been chasing this electric dream since unveiling the Mission E concept back in 2015, but reality's biting hard.
It's a reminder that shifting gears in the car world isn't just about tech; it's about what folks actually want to buy. As Blume put it in his call, it's a "tough and long road" ahead.
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