Core Viewpoint - Porsche is experiencing a significant decline in financial performance, with a 99% drop in operating profit and a 6% decrease in sales revenue, marking a stark contrast to its previous status as a leading luxury car brand [5][9][13]. Group 1: Financial Performance - In the first three quarters of 2025, Porsche reported sales revenue of €26.86 billion, a 6% year-on-year decline, and an operating profit of only €40 million, down from €4.035 billion the previous year, representing a 99% drop [5][13]. - The third quarter of 2025 saw an operating loss of €966 million, compared to a profit of €974 million in the same period last year [5][13]. - Porsche's stock has significantly declined, leading to its removal from the DAX index, indicating a loss of status in the capital market [17]. Group 2: Market Dynamics - Porsche's sales in China fell by 26% in the first three quarters of 2025, with a 42% drop in the first quarter alone, marking a shift from being its largest market to experiencing negative growth [18][20]. - The brand's luxury image is being challenged by domestic competitors in China, leading to a price collapse for models like the Macan, which is now being sold at a significant discount [21][23]. - The competitive landscape in the luxury car segment is changing, with traditional definitions of luxury being redefined by local brands [34]. Group 3: Strategic Adjustments - Porsche is undergoing a strategic restructuring, delaying the launch of electric models and extending the lifecycle of combustion engine vehicles, which reflects a significant shift in its electric vehicle strategy [27][29]. - The company is facing increased costs due to tariffs in the U.S. market, with an estimated loss of €700 million for the year due to import duties [30]. - A new CEO has been appointed to lead the company through this transition, with a focus on understanding consumer needs and enhancing product personalization [40][41].

Core Viewpoint - Porsche is experiencing a significant decline in financial performance, with a 99% drop in operating profit and a 6% decrease in sales revenue, marking a dramatic fall from its previous status as a leading luxury car brand [4][11][12]. Group 1: Financial Performance - In the first three quarters of 2025, Porsche reported sales revenue of €26.86 billion, down 6% from €28.56 billion in the same period of 2024 [5][11]. - The operating profit plummeted to €40 million from €4.035 billion, a staggering 99% decrease [5][11]. - The company faced a loss of €966 million in the third quarter, contrasting with a profit of €974 million in the same quarter of the previous year [4][11]. Group 2: Market Position and Historical Context - Porsche was once a darling of the European capital market, achieving a valuation of €75 billion at its IPO in September 2022, and briefly exceeding €83 billion in market value [6][8]. - The brand's sales in China, previously its largest market, fell by 26% in the first three quarters of 2025, with a notable 42% drop in the first quarter alone [13][14]. Group 3: Strategic Challenges - The decline is attributed to multiple pressures, including the shift towards electric vehicles, geopolitical factors, and changing consumer preferences [19][24]. - Porsche has postponed the launch of several electric models and extended the lifecycle of its fuel and hybrid models, indicating a strategic pivot back to internal combustion engines [19][21]. - The company is facing significant costs due to U.S. tariffs, with an estimated loss of €700 million for the year, further complicating its financial recovery [22][24]. Group 4: Internal Reforms and Future Outlook - Porsche is undergoing a major restructuring, including a reduction in the number of dealerships in China and a focus on localizing its product offerings [29][31]. - The company plans to cut 1,900 jobs and has appointed a new CEO, Michael Leiters, to lead the brand through this transitional phase [31][32]. - The management anticipates that 2025 will be a challenging year, with recovery expected to begin in 2026 [31][32].

Core Insights - Porsche reported a significant loss of €966 million (approximately ¥8 billion) in Q3, leading to a 99% year-on-year decline in sales profit for the first three quarters of the year [1] - The company's revenue for the first nine months was approximately €26.86 billion, a 6% decrease compared to the previous year [1] - Porsche has postponed the launch of several electric vehicle models and extended the market lifecycle of various fuel and hybrid models, incurring an additional €2.7 billion (approximately ¥22.4 billion) in restructuring costs [1] Financial Performance - For the first nine months, Porsche's operating income was approximately €26.86 billion, down 6% year-on-year [1] - Sales profit was only €4 million, a drastic drop from €403.5 million in the same period last year, marking a 99% decline [1] Market Challenges - The company faced additional costs of €300 million due to U.S. tariff policies in the first nine months, with an estimated total impact of €700 million for the entire year [2] - Porsche plans to optimize its organizational structure, including laying off 1,900 employees and cutting 2,000 temporary positions by the end of the year [2] Leadership Changes - Porsche announced a leadership change, discussing the early departure of CEO Oliver Blume, with Michael Leiters, former head of McLaren Automotive, as a potential successor [2] Sales Trends - In the Chinese market, Porsche's sales fell by 26% year-on-year to 32,000 units in the first three quarters, marking a continued decline since reaching a peak of 95,700 units in 2021 [3] - The sales forecast for China from 2022 to 2024 shows a downward trend, with expected sales of 93,200 units in 2022, 79,300 units in 2023, and 56,900 units in 2024 [3] Stock Market Performance - Porsche's stock has been on a downward trend this year, with a recent increase of 3.65% [4] - The company was removed from the DAX index and included in the mid-cap MDAX index as of September 22 [4]

Core Viewpoint - Porsche is facing significant financial challenges, with a reported loss of €966 million in Q3 and a 99% decline in sales profit for the first three quarters of the year, attributed to various factors including market conditions and strategic shifts in their product lineup [1][3]. Financial Performance - In the first nine months of the year, Porsche's revenue was approximately €26.86 billion, a decrease of 6% year-on-year [1]. - The sales profit for the same period was only €4 million, down from €403.5 million in the previous year, marking a 99% decline [1]. Strategic Changes - Porsche has postponed the launch of several electric vehicle models and extended the market lifecycle of various fuel and hybrid models, incurring an additional cost of approximately €2.7 billion due to restructuring measures [3]. - The company has also terminated its battery production plans, indicating a shift in focus away from in-house battery manufacturing [3]. Market Challenges - The U.S. tariff policy has added pressure on Porsche's performance, with an additional cost of €300 million in the first nine months and an expected total loss of €700 million for the year due to tariffs [5]. - In response to these pressures, Porsche plans to optimize its organizational structure, including laying off 1,900 employees and cutting 2,000 temporary positions [5]. Leadership Changes - Porsche is undergoing a leadership transition, with discussions about the early departure of CEO Oliver Blume, who has been in the role since 2015 [7]. - Michael Leiters, a former executive at McLaren, is a potential successor for the CEO position [7]. Market Performance in China - Porsche's sales in China have seen a significant decline, with a 26% drop in the first three quarters, totaling 32,000 units sold [7]. - This marks a continuation of a downward trend in the Chinese market, with sales decreasing from a peak of 95,700 units in 2021 to projected figures of 56,887 units in 2024 [7]. Stock Market Position - Porsche's stock has been underperforming, with a general downward trend observed this year, and the company was recently removed from the DAX index and placed in the MDAX index [11].

Core Viewpoint - Porsche may cease electric vehicle sales in the Chinese market within the next two to three years due to relatively low sales figures [1] Group 1: Company Strategy - Porsche's CEO, Oliver Blume, indicated that the sales volume of electric vehicles in China is "relatively low" but did not disclose specific sales figures [1] - The company had previously been proactive in the electric vehicle sector, launching the all-electric Macan and the new Taycan4 in April last year [1] Group 2: Sales Performance - The all-electric Macan was launched in China with a starting price of 728,000 yuan, while the new Taycan4 was priced from 1,038,000 yuan [1] - Data shows that global deliveries of the Taycan in the first three quarters of 2024 were only 14,000 units, representing a 50% year-on-year decline, indicating challenges in sales for its electric models globally, including in China [1]