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Volkswagen's EV Push Hit by Porsche Delays, Stock Plunges 14.9%

Porsche's electric vehicle delays are costing Volkswagen big. Temporary plant closures and a stock price drop signal a strategic reset for the company.

In this picture there is a black color Nissan sports car. Behind there are some cartoon posters and...
In this picture there is a black color Nissan sports car. Behind there are some cartoon posters and on the bottom side of the image there is a small quote written on it.

Volkswagen's EV Push Hit by Porsche Delays, Stock Plunges 14.9%

Volkswagen faces a setback in its electric vehicle (EV) program, with Porsche's delays costing the company a hefty 5.1 billion euros. This has pushed back the market launch of several E-models and led to temporary plant closures due to declining demand. The company's stock has also taken a hit, down 14.9 percent from its March high, and analysts are expressing negative views on the stock market.

Volkswagen's stock is currently trading at 93.58 euros, showing oversold conditions with an RSI of 32.6. The company has already lost 1.5 billion US dollars due to US tariffs in the first half of 2025. To combat these issues, Volkswagen is temporarily shutting down production in two German EV plants. The Zwickau plant will stop production for a week starting October 6, and the Emden plant is reducing working hours.

The decline in EV demand is driven by multiple factors, including US tariffs, relaxed EU combustion engine ban efforts, and cheaper competition from China. Volkswagen is at a crossroads, needing to decide whether to correct its electric strategy or master the transition to e-mobility. Quarterly results expected on October 30 will reveal the impact of these production cuts and Porsche's electric program delays on Volkswagen's balance sheet.

Volkswagen's recent struggles have led to a massive downward revision of the 2025 profit forecast by €5.1 billion, halving the expected operating margin from 4-5% to 2-3%. This has resulted in a stock price drop, reflecting significant uncertainty and a strategic reset within the group. Financial analysts currently view Volkswagen's stock negatively due to these developments on the stock market.

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