Porsche AG Faces Financial Turbulence

In a startling turn of events, Porsche AG's shares took a nosedive, dropping over 7% this Tuesday. This dramatic decline follows the luxury carmaker's announcement of a significant downturn in its first-quarter earnings, coupled with a grim revision of its 2025 financial outlook.

A Closer Look at the Numbers

The company disclosed a 44% plunge in profit after tax, amounting to a mere €518 million. Earnings per share also suffered a similar fate, decreasing by 44.5% to €0.56. In a move that has left investors wary, Porsche has adjusted its revenue forecast for 2025 downwards, from the previously anticipated €39-€40 billion range to a more modest €37-€38 billion. Additionally, the return on sales guidance has been significantly lowered from 10%-12% to a stark 6.5%-8.5%.

Market Reaction

The financial markets responded swiftly to these revelations, with Porsche's stock price falling 7.6% to €43.35 by 9:18 am CET. This development marks a challenging period for the iconic automaker, as it navigates through these financial headwinds.