Porsche has shifted away from its EV strategy, shelving a planned battery-powered luxury SUV and moving to add more combustion-engine and hybrid models.

The carmaker, owned by Volkswagen, expects this pivot to result in a €1.8 billion (US$2.1 billion) hit to operating profit, prompting both Porsche and Volkswagen to cut their financial outlook for the year.

This marks the fourth time Porsche has lowered its guidance in 2025, and the company is dropping out of Germany’s DAX index due to a drop in its share price.

Porsche is also cutting costs, including jobs, and has abandoned plans to produce its own batteries, citing weak EV demand.

🔗 Source: Bloomberg