Times have changed， and Porsche， once the most profitable luxury car brand， has released its harshest financial report since its IPO:
The company’s operating profit for the first three quarters shrank by 99%， with its core automotive segment experiencing a loss of 2.28 billion euros (approximately 1.89 billion RMB).
In the third quarter alone， the operating loss reached 9.66 billion euros， equivalent to about 8 billion RMB. The net loss after tax for the quarter was 600 million euros (approximately 4.97 billion RMB).
The CFO acknowledged during a conference call that the company’s performance has entered its “darkest hour.”
Surprisingly， at this critical juncture， Porsche’s first decisive move is:
The best-selling internal combustion engine model， the Macan， will be discontinued in six months.
Porsche at the “Bottom”: An 8 Billion RMB Quarterly Operating Loss
Earlier sales figures had already indicated pressure on Porsche’s performance:
In the first three quarters of this year， Porsche delivered 212，500 vehicles globally， a year-on-year decrease of 6%. However， the proportion of pure electric vehicles surged from 7.3% last year to 23.1%.
In terms of market structure， North America， Porsche’s largest single market， saw sales of 64，500 units in the first three quarters， a year-on-year increase of 5%.
Conversely， China， Germany， and other regions in Europe experienced significant declines. The Chinese market saw the steepest drop， with sales of 32，195 units in the first three quarters， a year-on-year decrease of 26%.
This trend is reflected in Porsche’s latest financial report:
The company’s revenue for the first three quarters was 26.864 billion euros (approximately 222.335 billion RMB)， a year-on-year decrease of about 6%， consistent with the sales decline.
Of this， automotive sales revenue was 23.83 billion euros (approximately 197.224 billion RMB)， down 8% year-on-year， accounting for about 88.71% of total company revenue.
Third-quarter revenue stood at 8.7 billion euros (approximately 72 billion RMB)， down 4.40% year-on-year and down 6.37% quarter-on-quarter.
However， the pressure on Porsche’s profitability is significantly amplified.
From January to September this year， the company’s operating profit plummeted from 4.035 billion euros (approximately 33.395 billion RMB) in the same period last year to a mere 0.04 billion euros (approximately 0.331 billion RMB)， a staggering 99% year-on-year drop.
In the third quarter alone， Porsche recorded an operating loss of 966 million euros， roughly 8 billion RMB， which translates to a daily loss of 86.96 million RMB.
The core business of selling cars failed to generate profit， instead incurring an operating loss of 228 million euros (approximately 1.887 billion RMB)， compared to an operating profit of 3.771 billion euros (approximately 31.2 billion RMB) in the same period last year.
The operating profit margin dropped to 0.2%， significantly lower than the 14.1% of the previous year.
Net profit after tax for the first three quarters also fell by a sharp 95.9% year-on-year to 114 million euros (approximately 0.943 billion RMB); the third quarter recorded a net loss after tax of 600 million euros (approximately 4.97 billion RMB).
Positively， the cash flow of the automotive business increased slightly from 1.235 billion euros to 1.34 billion euros， with the cash flow margin rising from 4.8% to 5.6%.
Source: Porsche Official Website (all car images below are from Porsche Official Website). This financial performance has led Porsche to further lower its full-year earnings forecast:
The original projection for total revenue was 3.9 to 4.0 billion euros (approximately 32.3 to 33.1 billion RMB) with a profit margin of 10% to 12%. This has now been revised to revenue of 3.7 to 3.8 billion euros (approximately 30.6 to 31.45 billion RMB) with a profit margin of 0% to 2%.
Profitability and cash flow targets for the automotive segment have also been adjusted downwards， though the company still aims for pure electric vehicles to constitute 20% to 22% of sales.
As of this writing， Porsche’s stock price stands at 47.16 euros (approximately 390 RMB)， a decline of nearly 58% from its IPO price of 82.5 euros (approximately 682.8 RMB) in 2022.
Porsche’s CFO， Jochen Breckner， admitted during the earnings call that 2025 is expected to be a low point for Porsche’s financial performance.
However， he stated that the company has further clarified its strategic direction and is now resolutely implementing clear decisions， anticipating a significant improvement beginning in 2026.
How did Porsche， Once a Cash Cow for Luxury Cars， End Up Here?
What’s Wrong with Porsche?
In its financial report， Porsche attributed the pressure on its performance and continuous profit decline this year to several factors:
Firstly， internal strategic adjustments have led to extraordinary expenses. This is the primary reason for the profit drop， involving adjustments in product strategy and battery business.
Regarding product strategy， due to the slower-than-expected adoption of electric vehicles， Porsche announced a major adjustment to its EV strategy last month. The company has decided to slow down its electrification process and will introduce more gasoline and plug-in hybrid models in the future. It also plans to collaborate with the Volkswagen Group to redesign the new EV platform for 2030.
These changes incurred additional expenses of approximately 1.7 billion euros (about 14.1 billion RMB)， directly and significantly eroding operating profits.
In the battery business， Porsche acquired V4Smart， a battery company from the German manufacturer VARTA. This adjustment also resulted in approximately 400 million euros (about 3.3 billion RMB) in additional expenditure.
Secondly， Porsche’s profits have also been impacted by external market shocks， mainly in the Chinese and U.S. markets.
In China， a critical market for Porsche， intensified competition in the luxury car segment and weakening consumer demand， coupled with Porsche’s decision to control sales for “value preservation，” led to a 25.6% drop in deliveries in the first three quarters， further dragging down overall revenue.
The U.S. market faced the impact of additional tariffs， directly increasing costs. Combined with inventory revaluation and increased provisions for after-sales parts， this resulted in a profit loss exceeding 500 million euros (approximately 4.1 billion RMB).
To stem losses and regain profitability， Porsche is undertaking a comprehensive self-rescue initiative:
The most immediate cost-saving measure perceived by the public is personnel adjustments.
Earlier this year， Porsche announced plans to cut 1，900 jobs by 2029. Recently， the company further indicated its intention to eliminate 2，000 temporary positions within this year， though negotiations are still ongoing.
Just days before releasing its financial report， Porsche announced the replacement of its CEO of ten years， Oliver Blume， signaling a desire to avoid the distraction of a “dual CEO” role.
To address the tariff pressure in the U.S. market， Porsche has decided to increase prices in the U.S. within the coming months.
In response to the pressures of the transformation， Porsche’s latest decision is to discontinue three models: the gasoline-powered Macan， the 718 Boxster， and the Cayman.
It’s important to note that the Macan is Porsche’s best-selling model， with 64，800 units sold in the first three quarters， accounting for nearly 30% of total sales and showing a 17.8% year-on-year increase.
According to Porsche’s CFO， the final batches of the 718 Boxster and Cayman are currently being produced. The gasoline-powered Macan is expected to be discontinued by mid-2026， with some markets potentially extending sales into 2027 based on inventory levels.
The Macan will indeed undergo a generation change. The second-generation Macan will be available in gasoline and plug-in hybrid variants， built on the new Audi Q5 platform， and will be sold alongside the current pure electric Macan.
Another noteworthy shift is in Porsche’s battery operations. Almost concurrently with its external acquisitions， Porsche has terminated its in-house battery production plans.
Since news emerged in 2023 about the research and development of new solid-state batteries， the company had expressed confidence in integrating them into electric vehicles within a few years， promising a range of up to 1，300 kilometers.
However， development has been challenging， and the company remains highly dependent on external suppliers， who have not provided satisfactory assurances.
In September 2022， an incident in Suzhou involved a Porsche Taycan catching fire after colliding with a guardrail. In the three years that followed， Porsche issued three recalls for the Taycan in October 2023， May 2024， and November 2024， all citing battery-related issues.
Adding to Porsche’s woes， another battery-related incident has recently occurred.
One Blow After Another: Pure Electric Taycan Catches Fire
On the evening of October 24th， a Porsche Taycan spontaneously combusted while driving in Xi’an. The car was reduced to a skeleton， but fortunately， the driver was able to stop and exit the vehicle promptly， avoiding any casualties.
Porsche has preliminarily confirmed that the vehicle was not involved in a collision， and the cause of the fire requires further professional assessment.
The vehicle in question is equipped with a ternary lithium battery from South Korea’s LG Chem. The battery pack is located in the chassis， and the models sold in China come with either 89kWh or 105kWh capacity options.
