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Porsche Woes Mount After Botched Bet on Electric Sports Cars
- Return on sales may shrink to as little as 10% this year
- Top executives are being ousted as market value plunges
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Porsche AG is falling further off track from lofty targets set during its splashy stock listing two years ago, with costs mounting from executives having misjudged how eager sports-car buyers were to go electric.
The 911 maker’s profit margin will slump to as low as 10% this year, half the 20% level management floated before an initial public offering that raised around €9.4 billion ($9.8 billion). The stock dropped Friday to a new low since the IPO, plunging as much as 8%.