Porsche Panamera. An electric version has been delayed until the 2030s. It will continue to be produced with combustion engines and as a hybrid plug-in until the 2030s.
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Springs The shares were reflecting the recovery of Volkswagen’s parent on Tuesday after news, the Sports Car Manufacturer at this year’s profit will be reduced by 1.8 billion euros ($ 2.1 billion), affected by excessively ambitious electricity plans.
Bombingwhich holds 75% of the Porsche, a profit of 5.1 billion euros ($ 6 billion) followed.
This was Porsche’s third profit warning this year, provoking the guess that his days as a luxury luxury stock could end.
Porsche has been hit hard by problems with electric vehicles simultaneously with sales on its larger market, war prices leading to China have dives. US duties have also undermined profits. China and the US represent almost half of the company’s sales. Porsche will delay and cancel certain power plans and extend the life of combustion versions such as the sedan Cayenne SUV and Panamera.
On Tuesday, Porsche shares recovered 2.4% at € 41.50 and VW proceeded 2.9% at € 94.45. On Friday shares of VW decreased by 7% and Porsche about 7.5%.
VW now expects that the operating profit margin will be reduced to about 2% for 2025, from the previous expectation of up to 5%. Porsche now sees a functional margin of no more than 2% compared to the previous prediction between 5% and 7%. When VW returned from Porsche in 2022, Porsche estimates that its profit margins would be about 20%.
HSBC Global Investment Research, in a research note that maintains her opinion on Porsche’s shares as “Hold”, said Porsche’s Pivot, caused more pain, but new products seemed promising. He said the prospects for 2026 were still uncertain.
“We also argue that the brand, products and pricing are not issues in Porsche, but the cost base has not yet been adapted to reflect a volume opportunity has more than half,” the investment researcher said.
“Without deeper cost adjustments, we believe that the margins will only gradually recover and remain well under the historical averages,” he said.
Reuters Breakingviews The column said Porsche had executed a bad turn in her ambitions.
“Glooming markets in China and America partially explain the change, but Porsche’s valuation is still vulnerable to the changing standards of turning to electric vehicles,” columnist Breakingviews Neil Unmack said.
The luxury premium sector loses the shine of
Unmack said Porsche’s destruction marked a change in expectations to what was a rock-solid upmarket section.
“However, wider car changes also hurt the company.
Bernstein investment researcher said Volkswagen companies had mixed results on the road to electricity. The process was considered as a way to restore its reputation after the dieselgate scandal.
Porsche Cayman will continue with the availability of the combustion engine
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Bernstein, in a research note on Porsche and Volkswagen, pointed out that it was almost 10 years since the dieselgate was recognized. This had reinforced EV plans, but now VW was forced to redefine its products in favor of more combustion machines.
Meanwhile, Oliver Blume, chief executive of VW and Porsche, he pointed out after announcing warnings of profit that the European Union has been requested by CO2 emissions to allow more hybrids, plug-in hybrids and electronic leaflets and to change the time of 2035.
The reaction of the stock market showed that investors had calmed down after the initial sale.
UBS Investment Bank, in a research note, said that in terms of the Volkswagen group, the news was not good, but the Brand’s underlying business (VW, Skoda, Seat) and Audi was not affected. In a separate note, UBS wondered if Porsche should negotiate at the price of a luxury equity. Investors could more and more consider Porsche as a simple circular car company Premium, rather than an extremely profitable luxury company with structural growth.
