Porsche Slashes Guidance as Delayed EV Rollout Hits Profits

Porsche shares sank 7.5% on Monday after the company delayed the launch of key electric models and slashed profit guidance.

The German luxury automaker stated that its strategy shift was driven by weak EV demand and market headwinds in China and the U.S.. It predicts that weak EV demand and market headwinds will impact Porsche’s operating profit by up to €1.8 billion ($2.1 billion) this year, resulting in a 2025 margin outlook of just 2%.

Production delays and profit impact

Porsche confirmed Friday it would push back the rollout of certain all-electric vehicles. The decision reflects both slowing demand and rising international pressures.

The German company reported that its profits were nearly wiped out in the second quarter, with challenges in China, its largest market, and higher U.S. tariffs adding to the strain. Analysts noted the guidance cut was largely expected, as Porsche has faced increasing pressure to extend combustion engine lifecycles amid tepid EV adoption

Volkswagen and investors react to overhaul

Porsche’s delay in EV plans and revised outlook triggered ripple effects across the Volkswagen Group. Volkswagen, which owns 75.4% of Porsche, warned the overhaul would cut its own profit by €5.1 billion. As a result, VW has lowered its margin outlook from 4–5% to just 2–3%.

Porsche SE, Volkswagen’s largest shareholder, also issued a profit downgrade. Jefferies analysts suggested this may be Porsche’s final guidance cut of the year. However, the analysts also warned of near-term product cycle and brand risks, with much of the €1.8 billion charge expected to be incurred in the third quarter.

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