BERLIN (Reuters) -Shares in Porsche plunged by 4.1% on Monday after the German luxury sports carmaker dialled back the rollout of electric models due to weak demand and slashed its 2025 profitability outlook.
Its parent Volkswagen and holding company Porsche SE, Volkswagen's biggest shareholder, fell by 3.9% and 4.3%, respectively, at market open.
Porsche cut its profitability guidance on Friday and announced a delay in the launch of some all-electric models in further signs of trouble for the company,
whose profits were nearly wiped out completely in the second quarter amid pressure in its key market China and higher U.S. tariffs.
As a result of the product delays, Porsche now expects its profit margin this year to reach a maximum of 2%, down from a previously guided range of 5-7%.
Volkswagen, Europe's top carmaker, said it would take a 5.1 billion euro ($6 billion) hit from the far-reaching product overhaul at its 75.4%-owned subsidiary.
Volkswagen cut its profit margin outlook to 2-3% from 4-5%, while Porsche SE also cut its outlook for profit after tax.
Jefferies analysts commented that Porsche and Volkswagen's outlook revision may be the last but warned that it could give rise to product cycle and brand challenges.
One local trader said the strategic decision was "inevitable" and warned that the sports carmaker had become too dependent on electric vehicles.
(Reporting by SimonFerdinand Eibach, Editing by Rachel More and Miranda Murray)
