Porsche is confronting a difficult period as declining global sales, a sharp drop in share price, and leadership changes converge amid shifting automotive priorities in its key markets. The German luxury automaker reported total deliveries of 279,449 vehicles in 2025, a 10% decrease compared with 2024, underscoring the strain created by diverging consumer expectations in the United States and China.
The company’s challenges are especially pronounced in China, the world’s largest car market. Porsche deliveries there fell 26% last year, weighed down by an economic slowdown and changing buyer preferences. While Porsche has invested heavily in electrification, that strategy has not translated into sustained momentum among Chinese consumers. The Taycan, long positioned as a benchmark electric sports sedan, has struggled to maintain its standing as competition intensifies. The Xiaomi SU7 Ultra recently eclipsed the Taycan Turbo GT’s Nürburgring electric vehicle lap record, a symbolic moment that reflected the rapid advancement of domestic Chinese EV performance and contributed to waning enthusiasm for foreign luxury brands.
In contrast, the U.S. market is showing renewed interest in internal combustion vehicles, complicating Porsche’s product planning. The company’s strong emphasis on EV development has slowed updates to its gas-powered sports cars, even as demand for those models has returned. At the same time, tariffs in the U.S. have added pressure on German automakers, further limiting growth opportunities.
Europe has presented its own obstacles. Porsche was forced to phase out certain combustion-powered models that failed to meet new cybersecurity requirements. Management attributed delivery disruptions of the 718 and Macan to supply gaps linked to those regulatory changes, adding to an already challenging year.
The financial impact has been significant. Porsche’s stock price has fallen more than 30% year over year, signaling investor concern about the company’s strategic direction and ability to balance competing global demands.
In response, Porsche has moved to reset its leadership. Michael Lesters was named the company’s new chief executive officer, effective Jan. 1. His appointment comes at a pivotal moment, as Porsche weighs how to position itself between a U.S. market leaning back toward gasoline-powered vehicles and a Chinese market demanding cutting-edge electric performance.
As Porsche navigates these crosscurrents, its next moves are likely to define whether the brand can stabilize sales and regain confidence in an increasingly divided global automotive landscape.
Image via Porsche
