Porsche under fire: Analyst criticizes overambitious e-strategy
Golden times at Porsche? Over for now! The sports car manufacturer is struggling: China is weakening, the electric offensive is faltering, and profit targets are shaky. Analyst Fabio Hölscher (Warburg Research) puts his finger on the sore spot in "Automotive News": Porsche's electric strategy (80% by 2030) is "overambitious" – and a major reason for the misery.
The Zuffenhausen-based company's once steep success curve is collapsing. In the first quarter of 2025, Porsche reported a global sales decline of eight percent. Particularly dramatic were China, with a 42 percent drop, and the German domestic market, with a 34 percent drop. While there was growth in North America, the core problems are obvious.
Porsche 718 Cayman EV (2026), the Motor1.com render
Image from: Motor1.com
This is precisely where Fabio Hölscher's criticism comes in. The rigid goal of 80 percent of global sales being purely electric by 2030 is the crux of the matter, according to the Warburg Research expert, according to "Automotive News." The slower adoption of battery-electric vehicles (BEVs) is now forcing Porsche to further develop combustion engines, in addition to the costly delays in the ramp-up of electric models. A more flexible strategy à la BMW with more plug-in hybrids and shared platforms would have been wiser, according to Hölscher.
Reality confirms this: The Taycan , once a beacon of hope, has become a flop (sales slumped 50% in Q1-Q3 2024). The launch of the electric Macan was plagued by software issues and delays. The electrification of the iconic 718 (Boxster/Cayman) is also delayed due to complex battery placement – a supply gap is looming. Added to this is the rapid depreciation of electric models like the Taycan, which is unusual for luxury goods and undermines the promise of value retention.
Porsche Taycan GTS from 2025
Image by: Porsche
The slowdown in China, where strong local electric car competition is available at lower prices and, according to CFO Lutz Meschke, the brand name is less attractive, is further exacerbating the situation. In response, Porsche appears to be rethinking its approach: CEO Oliver Blume has already softened the 80 percent electric vehicle quota by 2030. "A flexibly designed drive strategy" is the new credo. Combustion engines and hybrids are once again the focus of attention to meet customer demands and market conditions. Technological openness is being demanded, and budgets and costs are being reviewed.
Red pen alert: Hard times for those spoiled by successThe tense situation is putting pressure on profitability and workforce. In 2024, operating profit fell to €5.6 billion (previous year: €7.3 billion), and the return on sales fell from 18.0 to 14.1 percent. A return of between 10 and 12 percent is even expected for 2025. Rumors of up to 8,000 job cuts are circulating; 1,900 jobs in research and production were already eliminated in February due to the "delayed ramp-up of electromobility." The "Road to 20" cost-cutting program, which was originally intended to secure a margin above 20 percent, is now being intensified.
Image by: Porsche
Warburg Research, including Hölscher, currently rates Porsche Automobil Holding SE as "Hold" with fluctuating price targets – a reflection of the uncertainty. The Zuffenhausen-based company is at a crossroads: Will it succeed in turning back to its former strength, or is a longer dry spell looming? Hölscher's criticism of the potentially overly aggressive and inflexible electrification strategy is likely to cause considerable internal controversy.
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