Porsche Cuts 2025 Outlook, Delays EV Launch Amid Global Market Pressures

Porsche has significantly downgraded its 2025 financial outlook due to weaker demand for electric vehicles, market pressures in China, and increased U.S. tariffs, leading to an estimated 1.8 billion euro hit on operating profit. The German automaker will delay the launch of certain all-electric models, with new SUVs above the Cayenne series initially offered only as combustion engine and plug-in hybrid vehicles, extending the production of combustion and hybrid models into the 2030s. This shift results in Porsche lowering its return on sales forecast to up to 2% from 5%-7%, and its automotive EBITDA margin to between 10.5% and 12.5%, down from earlier estimates. Volkswagen, Porsche's parent company, will take a 5.1 billion euro impairment charge related to this strategic overhaul, reflecting the significant impact on the group’s profit outlook. These developments highlight the challenges facing the luxury electric vehicle sector and could affect related stock indices and investor sentiment, including potential influences on technology and cryptocurrency markets. Porsche shares have reacted with a decline, underscoring market concerns over the delayed EV rollout and margin pressures.