Porsche shares dropped 7.5% by late morning on Monday after the company confirmed it was delaying new electric vehicle models and cutting its future profit forecast. This came after a major shift in Porsche’s strategy, which it blamed on weak global demand for EVs. Investors dumped the stock fast, and that pain wasn’t limited to just Porsche. Volkswagen , which owns 75.4% of Porsche, also saw its shares fall 7%. The holding company Porsche SE, which is Volkswagen’s biggest shareholder, dropped 7.6%. All three took a direct hit after Friday’s announcement that Porsche would delay some all-electric launches and revise its 2025 profit goals. Volkswagen slashes margin and takes €5.1 billion hit The company said the strategy reversal would wipe out as much as €1.8 billion ($2.12 billion) from its 2024 operating profit. As a result, Porsche now sees its 2025 margin dropping to just 2%, way down from its earlier estimate of 5% to 7%. That’s not a small cut—it’s a total collapse in expectations. Volkswagen also had to eat the fallout. The German group slashed its own profit margin forecast to 2–3% from 4–5% and admitted the Porsche overhaul would cost it a €5.1 billion charge. Porsche SE, the holding company, also lowered its profit-after-tax forecast. The market didn’t buy into the “long-term benefits” spin. Jefferies analysts said this was Porsche’s third guidance cut this year, and while it might be the last, the damage to its brand and product roadmap is far from over. They also warned that most of the €1.8 billion cost would likely show up in the third quarter, setting Porsche up for a possible loss in the second half of the year. One trader who reviewed the update said bluntly: “The correction of the former mistake to become too dependent on EVs will take time.” The trader, who asked to remain anonymous, called the decision “inevitable,” suggesting the company had backed itself into a corner by going all-in on electric too quickly. China has been a growing problem for Porsche. The brand, which has long leaned on Chinese buyers to drive global profits, has seen pressure from rising tariffs and weaker demand in that market. The U.S. hasn’t helped either, with higher import costs adding more weight to its bottom line. All of that hit hard in Q2, nearly wiping out the company’s profits. Shareholders are also fed up with the leadership setup. Many are now calling on Oliver Blume to give up one of his two roles as CEO of both Porsche and Volkswagen. With the stock dropping and guidance falling apart, the calls for a change at the top are only getting louder. Sign up to Bybit and start trading with $30,050 in welcome gifts
