Porsche Shares Plans to "Counteract" Economic Conditions

The year to date has been — how best to phrase this? — complicated for automakers. The effects of tariffs on the industry are one big reason for that, as well as global uncertainty over the prospect of trade wars. That, in turn, is prompting companies across a host of industries to revisit earlier estimates and, in some cases, take bold steps to fortify their position.

Among the companies doing this is Porsche. As Autoblog’s Elijah Nicholson-Messmer reported, Porsche recently revisited its earnings predictions for this year. The automaker isn’t expecting to lose money, but its leaders aren’t expecting its profits to be as significant as they previously did, revisiting what had been a 10% profit margin down to between 6% and 8%.

“As we expected, the first quarter has been weaker,” said executive board member Dr. Jochen Breckner in a statement. “In addition, the macroeconomic situation will remain challenging. We can’t completely escape this, but we are doing everything within our power to counteract it.”

Breckner went on to speak about “investing decisively in the future of Porsche” in a way that would “have a short-term impact on the results of the 2025 financial year.”

Crashing My Dream Car: The Day I Totaled My $200,000 Porsche

“I called my wife. ‘I crashed the car,’ I told her. She asked if I was okay. ‘Yeah,’ I said, ‘but the car’s not.’”

One of those big investments involves battery technology. Earlier this year, the automaker announced it would acquire the majority of V4Smart GmbH & Co. KG, a company focusing on — as per Porsche’s announcement — “high-performance cylindrical cells.” Given that 39% of Porsche’s vehicular deliveries in the first quarter of 2025 were electric vehicles, 26% being fully electric, it’s not shocking to see them investing in the underlying components.

Among the other adjustments mentioned in Porsche’s revamped financial predictions are revised estimates for sales in both the United States and China, with Porsche citing the effects of tariffs in the former and reduced demand for luxury EVs in the latter. If this latest announcement adds some ambiguity to Porsche’s forecast, the overall impression is still optimistic; it won’t be long before we know for sure whether that optimism is warranted.