Porsche shares fell on Monday by over 7 percent, Aiming to the greatest inheritance since 2023, says Reuters.
“The problems of the car manufacturer indicate a wider challenge, which is facing European competitors, trying to adapt to a global change on the electric vehicle market, while the fierce price war and economic slowdown in China limit demand, especially in the case of higher class brands such as Porsche” – diagnoses the situation of the agency.
See also: The German automotive giant leaves the prestigious index
Impact on the Porsche results
Delays will reduce Porsche's operational profit by up to EUR 1.8 billion this year.
Porsche is currently expecting him The profit margin in 2025 will not amount to more than 2 percent.which is a decrease in relation to the previously forecast range from 5 percent. up to 7 percent
Some analysts cited by Reuters consider a reduction in forecasts as inevitable, taking into account the pressure on Porsche to extend the life of their internal combustion engines due to poor demand for electric vehicles.
The automotive industry changes are coming. How will they affect Porsche?
Let us remind you that In the European Union, the moment of slowing down the sale of new cars with internal combustion engines is approachinghowever, the directors of car companies urge Brussels to alleviate this goal, claiming that it is no longer feasible.
See also: Porsche with poor results. “It's because of the weakness on the automotive market”
Porsche announced that it expected a positive impact of this reorganization in the average-and long-term perspective, striving to achieve medium-term surgical profitability from sales of 10-15 percent, 18 percent. in 2023 and 14 percent in 2024
At the time of entering the stock exchange three years ago, the company planned a long -term return on sales of over 20 percent.
Since then, Porsche's shares have lost almost half of their value.
