Strategy change hits hard: Porsche reports historic 99% drop in profits

For a long time, Porsche was considered the epitome of high profitability with models such as the 911. Now, the shift in strategy toward electric mobility is forcing the sports car manufacturer to pay billions in adjustments, which are also reflected in the statistics.

According to a press release published on October 24, Porsche suffered a historic slump in profits in the third quarter of 2025. Operating profit fell from €4.035 billion in the same period last year to just €40 million, a decline of 99%. Revenue also fell by 6% to €26.86 billion. Operating return on sales fell dramatically from 14.1 to 0.2%.

E-mobility costs a lot of money

The main reason for the weak third quarter is the shift towards electric mobility. Porsche currently offers two electric cars, namely the sporty Taycan (in different models) and the compact Macan SUV. However, neither model is exactly a bestseller. According to its own figures, Porsche recorded special expenses of €2.7 billion to make its electric car business more profitable, totalling around €3.1 billion including customs duties. Planned electric models are being postponed, and the existing electric platform is being redesigned to also support combustion engines and hybrid drives in the future at a cost of around €1.8 billion. At the same time, a new electric platform for the 2030s is being developed in cooperation with other VW brands.

Changes in the Chinese market

Another influencing factor is the changing Chinese market, which has long been Porsche's strongest single market in terms of sales. Recently, however, demand for luxury cars has fallen, while competition from manufacturers such as BYD, Nio and Xpeng is becoming increasingly fierce. As a result, Porsche is reducing its dealer networks and staff in China.

Porsche expects recovery from 2026

For 2025 as a whole, Porsche expects sales of between €37 and €38 billion and an operating return of between 0 and 2%. The company expects a significant recovery from 2026 onwards. The aim is to make Porsche more robust and profitable in the long term. Whether this will succeed remains to be seen.