Core Insights - Porsche is experiencing significant challenges in its electric vehicle (EV) strategy, leading to a strategic pullback in its electrification plans [2][3][4] Financial Performance - Group operating profit for the first nine months of 2025 plummeted 99% to €40 million from €4 billion a year earlier, resulting in an operating margin decrease to 0.2% from 14% [5] - Group revenue decreased by 6% to €26.86 billion, impacted by weaker demand in China and 15% U.S. import tariffs [5] - Extraordinary expenses related to the EV slowdown and restructuring are projected to reach approximately €3.1 billion this year, including €1.8 billion in depreciation and provisions [5] Strategic Adjustments - Porsche has postponed its next electric platform and delayed several all-electric models, opting instead to launch a new SUV with combustion and plug-in hybrid engines [4] - The Panamera and Cayenne models will continue production with combustion and hybrid options into the 2030s [4] - Other automakers, including Ford, General Motors, and Tesla, are facing similar pressures, leading to delayed model launches and reduced production targets [6] Cash Flow and Liquidity - Despite the significant losses, Porsche's automotive net cash flow increased to €1.34 billion from €1.24 billion a year earlier, with a margin of 5.6% [7] - The CFO indicated that this performance demonstrates Porsche's ability to maintain liquidity even amid declining earnings [7]