Porsche rebounds in stock market under new CEO

Shares of Porsche AG surged by up to 4.4% at the opening of the Frankfurt Stock Exchange after the company announced a strategic shift in its electric vehicle approach and the appointment of a new CEO to reverse several months of poor performance.

The luxury sports car manufacturer recorded its first operating loss in the third quarter since going public, with a negative result of 966 million euros, burdened by costs associated with its new strategy to expand the range of combustion engine models and by U.S. tariffs.

"We expect 2025 to be the lowest point of the cycle," stated CFO Jochen Breckner while presenting the accounts. The company has cut its forecasts four times this year, affected by declining demand for electric vehicles, supply chain bottlenecks, and weak sales in China.

The deterioration in results led Porsche to exit the DAX index in Frankfurt, symbolising the brand's challenging period. To address the situation, the group has appointed Michael Leiters as the new CEO starting in January. Leiters, a former Porsche executive and until recently the CEO of McLaren Automotive, will replace Oliver Blume, who will continue to lead Volkswagen Group.

The leadership change marks the end of Blume's controversial dual role and opens a new chapter for the company. Analysts like Stephen Reitman from Bernstein warn that Porsche "still has a long way to go to regain market confidence," and do not rule out the possibility of the new CEO taking additional measures to accelerate recovery.

This comes at a critical point for Volkswagen, after its CFO, Arno Antlitz, announced that an additional 11 billion euros in cash flow would be needed to tackle the 2026 fiscal year. For now, the consortium, Europe's largest manufacturer, stated that it has more than 28 billion euros in liquidity to make necessary decisions and ensure "the financial stability of the Group."