Porsche Exits Germany DAX Amid Market Pressure, CEO Pledges Return

Porsche AG is being removed from Germany's prestigious DAX index and will move to the MDAX mid-cap index due to a significant decline in its stock price, which has dropped over 33% in the past year. This change reflects several challenges Porsche faces, including falling demand in key markets such as China, increased competition from domestic electric vehicle manufacturers, and the impact of tariffs imposed by President Trump on European car imports to the U.S. The company has lowered its financial outlook multiple times in 2025, with revenues and operating profits sharply down, partly due to special charges linked to strategic realignment and battery-related activities. CEO Oliver Blume, who also leads Volkswagen, has vowed to return Porsche to the DAX as soon as possible, while investors have expressed concerns about his dual role. The removal will lead to index funds selling Porsche shares, potentially putting short-term pressure on the stock, but Porsche remains a globally significant luxury brand focusing on future growth through electric vehicle innovation. The DAX will be replenished by companies like Scout24 and GEA Group, signaling a shift in market leadership within Germany's top listed firms.