Porsche AG Faces Market Backlash After Earnings Disappointment

In a startling turn of events, Porsche AG witnessed its shares plummet by over 7% this Tuesday. The dramatic drop came in the wake of the company's announcement of a 44% plunge in profit after tax, amounting to a mere €518 million, and a significant 44.5% decrease in earnings per share, which fell to €0.56.

Revised Forecasts Spark Investor Concerns

The luxury carmaker didn't stop at revealing its current financial woes. It also delivered a bleak outlook for 2025, slashing its revenue expectations from the previously anticipated €39-€40 billion range down to €37-€38 billion. Moreover, the return on sales guidance took a hit, adjusted downward from 10%-12% to a concerning 6.5%-8.5%.

Market Reaction

By 9:18 am CET, the repercussions were clear as Porsche's stock tumbled to €43.35, marking a 7.6% decline and leaving investors and market watchers alike questioning the brand's near-term future.