Porsche shares fall nearly 10% on weak demand for electric vehicles

Porsche shares slumped nearly 10% after the company issued its fourth profit warning in a year, signaling persistent weakness in demand for its electric vehicles. The German sports-car maker, part of Volkswagen Group, said it would delay the rollout of several battery-powered models as it contends with subdued demand, aggressive price competition, and U.S. tariffs that have pressured margins.

Porsche has previously counted Emma Raducanu, the British tennis player, as a brand ambassador as part of its EV-focused marketing push. The latest setback underscores the challenges facing the company as it recalibrates its electrification strategy while navigating a crowded and price-sensitive market for battery-electric cars. The automaker also cited broader market forces that have cooled demand for flagship electric models, contributing to the refreshed warning cycle.

Oliver Blume, chief executive of Porsche and its parent company Volkswagen, said the company has observed “a clear drop in demand for exclusive battery-electric cars” and that it is taking that into account. “That’s why we are pushing back development of selected fully electric models,” Blume added, signaling a slower pace for aggressive BEV deployment amid the current demand environment.

Analysts viewed the move as a concrete manifestation of the risks associated with Porsche’s electrification strategy. Stephen Reitman, an analyst at Bernstein, said the latest development illustrated a broader bet on EVs that has not paid off as hoped, describing the strategy as a “busted flush” given the current demand dynamics and competitive pressures.

The broader VW Group footprint also reflected investor caution. Volkswagen’s shares fell more than 7% on the previous day as markets reassessed the auto giant’s exposure to a protracted EV cycle and potential inflationary pressures on raw materials and batteries. The Porsche update arrives as automakers worldwide reassess timelines for BEV model introductions in response to price wars, customer appetite, and regulatory shifts that affect profitability.

As Porsche adjusts its timetable for BEV launches, the company remains positioned within a rapidly evolving field where consumer demand has shown uneven strength across regions. The cycle emphasizes the delicate balance between investing in electric technology and delivering vehicles that meet consumer price expectations without eroding margins. Investors will be watching upcoming quarterly disclosures and management commentary for clarity on volumes, pricing, and the trajectory of the electrification plan.

Beyond the immediate earnings impact, the episode highlights ongoing market tensions over electrification strategies. The company’s decision to adjust BEV development timelines reflects a broader industry recalibration as automakers contend with supply-chain costs, tariff environments, and shifting consumer demand that can swing dramatically with macroeconomic conditions. Stakeholders will likely scrutinize how this tempering of the EV rollout affects Porsche’s long-term growth prospects within the VW Group and the broader push toward electrified mobility.