Porsche Shares Fall as EV Delays and Profit Outlook Cut Hit Volkswagen Group

Shares of Porsche dropped 6.2% in early Frankfurt trading on Monday after the luxury sports carmaker announced delays in its electric vehicle rollout and lowered its 2025 profitability outlook. The decision reflects weakening demand for EVs, pressuring both the company and its parent group.

On Friday, Porsche confirmed it would postpone the launch of several all-electric models. As a result, the automaker now expects its 2025 profit margin to peak at just 2%, significantly below its previous guidance of 5-7%. The news sparked investor concerns, pushing shares of Volkswagen, which owns 75.4% of Porsche, down 4.0%, while Porsche SE, Volkswagen’s largest shareholder, slipped 2.7%.

Volkswagen, Europe’s largest carmaker, warned that it will take a €5.1 billion ($6 billion) hit from Porsche’s product overhaul. The company also revised its profitability forecast, cutting its profit margin outlook to 2-3%, down from its earlier 4-5% target. Porsche SE followed suit, slashing its expected profit after tax.

The slowdown in EV adoption comes as traditional automakers face growing competition from Tesla and Chinese manufacturers, alongside high production costs and consumer hesitation over electric models. Porsche had positioned itself as a key player in the luxury EV market, but delays in launching flagship electric sports cars highlight broader industry challenges.

Investors are now watching closely to see how Porsche and Volkswagen adapt their strategies in response to softening EV demand. Analysts warn that failure to deliver profitable electric models on schedule could further weigh on Europe’s top automaker at a critical time for the industry.