Porsche's stock price plummeted 9.3% due to a reduction in electric vehicle business

Luxury car manufacturer Porsche Group has scaled back its electric vehicle business and adjusted its previous high-cost strategy that led to declining profit margins and burdened its parent company Volkswagen Group, resulting in the largest historical drop in its stock price. The company, known for its 911 model, has shelved plans for a future battery-powered luxury SUV and stated it will increase the number of fuel and hybrid vehicles to enrich its product lineup. This strategic shift has led to a reduction in operating profit by 1.8 billion euros and forced both Porsche and Volkswagen Group to lower their annual performance expectations. This is yet another setback for the German automotive industry, which is grappling with high costs and sluggish sales. On the Frankfurt Stock Exchange, Porsche's stock price fell by as much as 9.3% during trading, marking the largest intraday drop since its listing about three years ago. The company's stock price has fallen nearly 30% this year. Volkswagen Group's stock saw a maximum drop of 8.4%, the largest decline in over two years. Like its European peers Stellantis Group and Renault Group, German automakers, despite investing billions of euros in electric vehicle technology, are still facing lower-than-expected demand for electric vehicles. Since its high-profile listing in 2022, Porsche has struggled to meet market expectations. The profit warning issued last Friday marks the company's fourth downward revision of its performance guidance this year, and its stock price has fallen to a low point, nearing removal from the German benchmark stock index - the DAX index