Porsche AG shareholders are calling on the luxury-car maker to ease off its electric-vehicle push as a global slowdown for the technology threatens sales and profits.
At the company’s annual shareholder meeting on Friday, Chief Executive Officer Oliver Blume will be asked why he’s sticking with a goal for plug-in Porsches to account for more than half of sales next year. Rivals including Mercedes-Benz Group AG are walking back their EV ambitions due to poor demand.
Investors are also pointing to slow sales in China and problems sourcing parts just as the manufacturer attempts a major overhaul of its lineup. The issues have weighed on Porsche shares, which slumped by more than a third in the past year. Ferrari NV’s stock is up around 40% during that time.
“The euphoria of the initial public offering has faded,” Deka Investment’s Ingo Speich said in prepared remarks. Deliveries of Porsche’s flagship Taycan EV roughly halved in the first quarter, with “customers more likely to boycott than buy it.”
When addressing shareholders, Blume will flag a “tough” situation in China, where the company is working to smooth ties with dealers unhappy over poor EV sales. Porsche also would suffer from an escalating trade conflict with Beijing, which has signaled it’s ready to retaliate if the European Union imposes additional tariffs on Chinese EVs.
The CEO will defend his plan to refresh five of the company’s six model lines in a year, saying in prepared remarks the extra spending will pay off down the road.
A lot will depend on whether Porsche’s new electric Macan — deliveries are due to start in the second half — can match the popularity of its combustion-engine sibling, which outsold every Porsche last year except the larger Cayenne.
Blume expects the compact sport utility vehicle, which competes with BMW AG’s iX and Tesla Inc.’s Model X, to be the “highest-performing in its segment.” The car was delayed for roughly two years due to software issues, but now features technology including a head-up display that beams navigation cues into the driver’s field of vision.
Porsche plans to offer battery-powered versions of the 718 Boxster and Cayman models by mid-decade, with an electric Cayenne to follow shortly afterward. The manufacturer aims for all-electric models to account for more than 80% of sales in 2030.
Porsche’s EV rollout should follow demand, said Union Investment’s Moritz Kronenberger, adding that selling more combustion-engine models until EV demand picks up again will bolster margins and free cash flow.
Deka’s Speich expressed doubt about EV demand, urging Blume to accept lower volumes and avoid price cuts that would hurt the Porsche brand. Stifel analyst Daniel Schwarz said the Taycan is losing its value faster than the iconic 911 sports car, a development that may turn off buyers.
Investors “would like to see some flexibility regarding the rollout of more battery-electric vehicles,” Schwarz said.
