Porsche Plunges 7.5% as EV Ambitions Stall: Guidance Cut Sparks Investor Panic

Another legacy automaker hits the electric wall.

The EV Reality Check

Porsche's electric dreams just got a brutal dose of reality. The German luxury brand is slamming the brakes on its EV rollout timeline—and investors aren't sticking around to see how this story ends.

Market Reaction

Traders dumped shares mercilessly after the announcement, sending Porsche down a gut-wrenching 7.5% in single-day trading. The guidance cut reveals deeper structural issues than temporary supply chain hiccups.

Broader Implications

This isn't just about one automaker missing targets. It's another signal that legacy manufacturers are struggling with the capital-intensive transition to electric—meanwhile, crypto-native projects reimagine mobility without the baggage of century-old manufacturing constraints.

Another quarter, another legacy giant learning that building the future requires more than just polishing yesterday's playbook.

Volkswagen slashes margin and takes €5.1 billion hit

The company said the strategy reversal would wipe out as much as €1.8 billion ($2.12 billion) from its 2024 operating profit. As a result, Porsche now sees its 2025 margin dropping to just 2%, way down from its earlier estimate of 5% to 7%. That’s not a small cut—it’s a total collapse in expectations.

Volkswagen also had to eat the fallout. The German group slashed its own profit margin forecast to 2–3% from 4–5% and admitted the Porsche overhaul would cost it a €5.1 billion charge. Porsche SE, the holding company, also lowered its profit-after-tax forecast.

The market didn’t buy into the “long-term benefits” spin. Jefferies analysts said this was Porsche’s third guidance cut this year, and while it might be the last, the damage to its brand and product roadmap is far from over. They also warned that most of the €1.8 billion cost would likely show up in the third quarter, setting Porsche up for a possible loss in the second half of the year.

One trader who reviewed the update said bluntly: “The correction of the former mistake to become too dependent on EVs will take time.” The trader, who asked to remain anonymous, called the decision “inevitable,” suggesting the company had backed itself into a corner by going all-in on electric too quickly.

China has been a growing problem for Porsche. The brand, which has long leaned on Chinese buyers to drive global profits, has seen pressure from rising tariffs and weaker demand in that market. The U.S. hasn’t helped either, with higher import costs adding more weight to its bottom line. All of that hit hard in Q2, nearly wiping out the company’s profits.

Shareholders are also fed up with the leadership setup. Many are now calling on Oliver Blume to give up one of his two roles as CEO of both Porsche and Volkswagen. With the stock dropping and guidance falling apart, the calls for a change at the top are only getting louder.

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