Porsche

P911Automotive

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Podcasts

Episodes

Podcast consensus

Points of consensus

▶Porsche experienced a severe financial downturn in 2025, with multiple sources citing a 99% collapse in operating profit, a significant drop in sales and revenue, and its first quarterly loss since its 2022 IPO.

▶The company is facing a crisis with its electric vehicle strategy, evidenced by a 49% drop in Taycan deliveries, a strategic pivot back to combustion engines, the cancellation of an EV battery plant, and the softening of its 2030 EV sales targets.Apr 2026

▶Porsche's performance in the Chinese market has deteriorated dramatically, with sales falling by 42% in early 2025, its share of total deliveries dropping from 33% to 15%, and facing intense competition from local brands.Apr 2026

Points of debate

▶The exact per-vehicle profitability is inconsistent across sources, with one claim stating $30,000-$40,000 per vehicle and another citing 18,000 euros, presenting different figures and currencies.Apr 2026

▶Porsche's brand strength in China is contested. While one source noted strong visitor traffic at the 2023 Shanghai Auto Show, multiple other claims detail a catastrophic collapse in sales and market share due to local competition.Apr 2026

▶The future viability of the Porsche Taycan is uncertain. While one claim notes a 49% drop in deliveries, another points to speculative internal discussions about potentially canceling the model altogether.Apr 2026

▶There is a conflict between the internal assessment of the business model and external perception of brand value. CEO Oliver Bloom stated the model is 'no longer working,' while an external expert believes the brand's reputation for reliability still justifies its premium price.Apr 2026

Key themes

▶EV Strategy Crisis and Reversal

Porsche is undergoing a significant strategic crisis related to its electric vehicle transition. Faced with weak demand, evidenced by a 49% drop in Taycan sales, the company has officially shifted focus back towards combustion engines, scrapped plans for an in-house battery plant, delayed new EV models, and deemed its 80% EV sales target for 2030 'not realistic anymore'.

This pivot suggests that Porsche misjudged market readiness and competitive pressures for its high-end EVs, forcing a costly and potentially damaging reversal that could put it behind competitors in the long-term electrification race.

▶Financial Collapse in 2025

The company experienced a near-total collapse in profitability in 2025, with operating profit plunging 99% in the first nine months and the company posting its first quarterly loss ($1.1 billion) since its 2022 IPO. This was driven by a 6% drop in sales, significant investments, and strategic missteps, leading the CEO to declare the current business model broken.

The speed and severity of the financial decline indicate deep structural problems beyond a simple market downturn, highlighting extreme vulnerability to shifts in key markets like China and the high costs of its EV transition.

▶The China Market ChallengeApr 2026

Porsche's once-dominant position in China has eroded rapidly, with vehicle deliveries dropping 42% in early 2025 and its share of total sales falling from 33% to 15%. The company faces intense pressure from local competitors like Zeekr, Nio, and Xiaomi, which offer vehicles with more advanced software at lower prices.

The decline in China reveals a critical failure to adapt to the local market's rapid technological evolution, particularly in software and in-car tech, turning a primary growth driver into a major liability.

▶Contrasting Profitability ModelsApr 2026

Despite the corporate-level profit collapse, Porsche's individual vehicles, particularly high-end trims like the 911 Turbo S, remain highly profitable. However, its overall gross margin (15-25%) and per-car profit are significantly lower than ultra-luxury competitors like Ferrari, requiring Porsche to sell six cars to match the profit from one average Ferrari.

This highlights a fundamental tension in Porsche's strategy: it operates at a much higher volume than true ultra-luxury brands but relies on a similar high-margin, high-prestige model, which is now failing under the weight of mass-market pressures and high R&D costs.

Source episodes

Sentiment over time

Apr 2026

5 bullish, 4 bearish, 9 neutral(18 claims)

Matt Miller believes Porsche's reputation for reliability justifies the premium ...

May 2026

1 bullish(1 claim)

The RV Tech joint venture will eventually provide the software and electrical ar...

Changes over time

2022

Porsche completes its Initial Public Offering (IPO).

2023

At the Shanghai Auto Show, Porsche maintains strong visitor traffic, but the popularity of emerging Chinese brands like BYD and Li Auto is noted as a significant trend.

2024

A key indicator of trouble emerges as global deliveries of the Porsche Taycan electric vehicle fall by 49%.

Early 2025

The crisis in the Chinese market becomes evident with a 42% year-over-year drop in vehicle deliveries.

Mid-2025

CEO Oliver Bloom makes a public admission to employees that the company's business model is 'no longer working in its current form'.

First 9 months of 2025

The company's financial situation culminates in a 99% collapse in operating profit, a $1.1 billion quarterly loss, and an official strategic pivot away from its aggressive EV targets and back towards combustion engines.

Suggested prompts

How can Porsche differentiate its EV offerings in China against local competitors that have superior software and lower price points? &nearr;What are the long-term financial implications of pivoting back to combustion engines while the rest of the industry moves towards electrification? &nearr;Can Porsche's high-margin models like the 911 and its Sonderwunsch customization program offset the losses from its EV investments and declining sales? &nearr;Given the 99% profit collapse and the CEO's admission of a broken business model, what specific restructuring steps are necessary to ensure a return to growth? &nearr;

Key concepts

Financial Performance 3 ep Electric Vehicle Strategy 3 ep China Market 3 ep Profitability & Margins 4 ep Competition 3 ep Product Line (Taycan, 911, SUVs) 4 ep Leadership & Personnel 3 ep Investment & Costs 2 ep Brand & Reputation 2 ep

Notable quotes

“This quarter, Porsche posted a loss of $1.1 billion. dollars its profit reportedly plunged nearly 99 percent its first negative result since going public in 2022”

Palki Sharma · LIVE | US-China Trade War: Is Trump Softening His Stance on China? | Vantage with Palki Sharma

“Porsche said the drop in profits was due to a change in strategy as the company shifted its focus back to combustion engines after weak demand for its electric vehicles.”

Unknown · Porsche Profits Fall 99% as CEO in Crisis Mode

“Porsche has scrapped plans for an in-house battery plant and delayed several new electric vehicle models due to cooling demand and soaring costs.”

Palki Sharma · LIVE | US-China Trade War: Is Trump Softening His Stance on China? | Vantage with Palki Sharma

“Porsche is facing increased competition in China from local brands such as Zeekr, Nio, and Xiaomi, which offer vehicles with advanced software and lower prices.”

Unknown · Porsche Profits Fall 99% as CEO in Crisis Mode

Report last updated: Apr 28, 2026

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