Porsche shares slide as CEO's turnaround plan fails to reassure investors

Porsche's new CEO, Michael Leiters, has appealed to shareholders for patience, promising to unveil detailed turnaround measures later this year. However, investors remain concerned about the sports car maker's declining profit margins and a significant slump in sales in China, which has turned from a key market into its worst-performing region.

Since its 2022 listing, Porsche's shares have approximately halved. Sales in China fell by 26% in 2025, contributing to an operating margin collapse to nearly 1%. Leiters' strategy aims to address these issues through a stronger focus on high-end models, sweeping cost cuts, and 3,900 job reductions already agreed with unions.

Analysts, however, question the long-term viability and direction of the strategy, particularly regarding investments in software and new business models crucial for the tech-focused Chinese market. While the popular 911 and the upcoming all-electric Cayenne SUV are central to the future lineup, their competitiveness against local, tech-laden brands at lower price points remains a concern.