Porsche in crisis: the company's profit has collapsed by 99%, iconic models discontinued

German auto giant Porsche found itself on the brink of the biggest crisis in its history. By the end of 2025, the company’s profit had shrunk from 4 billion euros to just 40 million—a 99% drop.
This is the most dramatic decline in financial performance in the brand’s entire history—a brand that, until recently, was considered the epitome of stability and luxury.

The Main Reasons for Porsche’s Collapse in 2025

1️⃣ U.S. Tariffs

U.S. import tariffs on European cars dealt a serious blow to Porsche.
The brand’s sales in the U.S., one of its key markets, fell by nearly 70%, resulting in losses amounting to millions.

2️⃣ Falling demand in China

The second blow came from the Chinese market—Porsche’s largest in the world.
Sales of luxury models there have plummeted, as local buyers are increasingly opting for electric vehicles from Chinese brands—BYD, Zeekr, Li Auto, and the Xiaomi SU7.
While China previously accounted for more than 30% of Porsche’s global sales, it now accounts for less than 10%.

3️⃣ A Failed Bet on Electric Vehicles

The company invested billions of euros in the transition to electric powertrains, but the market did not embrace this strategy.
Sales of the Taycan and the electric Macan fell significantly short of forecasts. Buyers are unwilling to pay a premium price for electric cars with shorter ranges and high maintenance costs.

Porsche is discontinuing iconic models

To cut costs, Porsche management has decided to discontinue production of several popular models:

• the Porsche Cayman sports coupe,

• the Porsche Boxster roadster,

• as well as the gasoline-powered Macan, which no longer meets EU environmental standards.

As a result, the company is fully committed to electrification, but experts warn that this move could pose yet another risk in 2026.

What Lies Ahead for Porsche in the Near Future

Analysts note that Porsche has found itself in a “transition trap”: the brand abandoned gasoline-powered cars too quickly, before it had a chance to establish sustainable demand for electric vehicles.
Added to this are steep U.S. tariffs and competition from Chinese premium brands, which offer similar models at significantly lower prices.

If this trend continues, experts predict that by 2026, Porsche may have to cut staff or seek a strategic partner to survive in the market.

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