Porsche shares plunge after announcing EV rollout delay

Porsche’s stock tumbled by more than 7% on Monday after warning last week that delays in its electric vehicle (EV) rollout will dent the carmaker’s 2025 earnings.

Caught between electrification and its iconic petrol-powered sports cars, the German firm said it will slow its push for EVs as demand weakens.

Shares of its parent Volkswagen also fell by more than 7%on the same dayafter saying it will spend billions to overhaul Porsche’s line-up of vehicles.

The companies’ struggles reflect the challenges for European manufacturers, who are faced 

Porsche said in a statement on Friday that it has reduced its projected profit margin from up to 7% to 2% or less.

It cited the “US import tariffs, the decline in the Chinese luxury market, and the slowdown in the ramp-up of electric mobility” among its challenges.

In a strategic shift, Porsche said an upcoming line of sport utility vehicles, originally planned as fully electric, will now launch exclusively with combustion engines and plug-in hybrid options.

Current models like the four-door Panamera and Cayenne will continue to be available with non-electric options well into the 2030s, it added.

Luxury carmakers BMW and Mercedes-Benz have also been slashing costs to keep up with rivals.

Porsche’s latest statement suggests it was easing off its electric goals, having unveiled its first electric concept car, the Mission E, a decade ago.