Porsche shares fell 4.1% on Monday after the German luxury sports car manufacturer adjusted its electric vehicle release plans due to weak demand and lowered its profitability forecast for 2025. This was reported by Reuters, writes UNN.
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Parent company Volkswagen (VOWG.DE) and holding company Porsche SE - Volkswagen's largest shareholder (PSHG_p.DE) - also lost value at the opening of trading: shares fell by 3.9% and 4.3% respectively.
On Friday, Porsche lowered its profitability forecast and announced a delay in the launch of several electric models — another sign of trouble for the company, whose profits almost completely disappeared in the second quarter amid pressure in the key Chinese market and rising tariffs in the US.
As a result of these delays, Porsche now expects this year's profitability to reach a maximum of 2%, while previously it was forecast to be within 5-7%.
Volkswagen, Europe's largest carmaker, said it would incur losses of 5.1 billion euros (about 6 billion dollars) due to a large-scale product line update at the subsidiary, 75.4% of which it owns.
Volkswagen also lowered its profitability forecast from 4-5% to 2-3%, and Porsche SE lowered its net profit forecast.
Analysts noted that this could be the last revision of forecasts from Porsche and Volkswagen, but warned that it could lead to problems with the model cycle and brand positioning.
One local trader called the strategic decision "inevitable" and noted that the sports car manufacturer had become too dependent on electric vehicles.