Here’s why the Porsche stock price has imploded

(Originally posted on : Invezz )

Porsche stock price has imploded, and moved to a record low as the company goes through one of its worst crises in decades. It slumped to an all-time low of €55.56, down by over 55% from its all-time high, bringing its market cap to over €25 billion. Let’s explore why the Porsche share price has imploded and whether it is safe to buy the dip. 

Donald Trump and his tariffs

The main catalyst for the recent Porsche share price crash is Donald Trump, who has threatened to implement tariffs on European goods. 

These would be big tariffs considering the volume that the two regions do each year. The trade volume is estimated to be $851 billion, with the EU selling products worth $503 billion. Germany is one of the biggest US trading partners.

Porsche is highly exposed to the United States. The last trading update shows that it delivered 310,718 vehicles in 2024, a drop from the 320,220 it delivered a year earlier. 28% of these vehicles went to North America, making it the biggest market in the market. The other biggest region was Europe, China, and Germany. 

While Volkswagen Group has manufacturing plants in the United States, Porsche exports all its vehicles to the country. This means that any tariff, especially a big one like 25% would make its vehicles to be highly expensive.

Analysts believe that such tariffs would pressure the company to set up a manufacturing plant in the US, a highly expensive endeavor. 

China, its other big market is going through major changes as local companies like XPeng, Li Auto, and Nio have gained maket share.

Read more: Very bad news for the vulnerable Porsche stock price

Porsche Taycan sales have tanked

The other main reason why the Porsche stock price has crashed is that its entry into the EV industry has not been all that successful. It did that by launching the Taycan brand, which because highly successful initially.

Recently, however, Porsche Taycan’s sales have crashed. It delivered just 20,800 vehicles in 2024, down from over 40,630 a year earlier. It attributed the drop to the slower than planned electric ramp up and product changeover.

The reality, however, is that EV demand has dropped, and customers are afraid of buying a highly depreciative vehicle. It has a 42% depreciation in three years, with some new models going for less than $50,000. 

Weak financial results

Porsche has published weak financial results in the past few quarters. The most recent numbers showed that the third-quarter revenue dropped by 5.2% to €28.6 billion, while its operating profit plunged by 26.7%. 

This slowdown happened even as the Porsche Cayenne sals jumped by 21% during the quarter. This growth was offset by a big drop in other brands like Macan, Taycan, and Panamera.

Analysts anticipate thar Porsche’s earnings will remain under pressure in the coming quarters, especially as the tariff threat and economic growth in key countries plunge. 

Porsche stock price analysis

Porsche stock by TradingView

The daily chart shows that the Porsche share price has been in a strong downward trend in the past few years. It recently plunged below the key support level at €60 and the 50-day moving average. 

Porsche stock price has moved below the descending channel shown in black, a bearish view. Therefore, the downward trend will continue as bears wait for the new Donald Trump tariffs that will hit it hard. Such tariffs may push it to the next support at €50, followed by €45. 

On the positive side, the stock has formed a falling wedge pattern pointing to more gains later this year. 

The post Here’s why the Porsche stock price has imploded appeared first on Invezz

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