Porsche’s 99% Profit Tumble Signals Trouble for Luxury Brands Worldwide
Once a post-pandemic success story, Porsche now faces slowing EV sales, weak China demand and rising tariffs shaking the luxury sector.
Porsche’s billion-dollar loss last week isn’t just a setback for one of the world’s most profitable automakers—it’s a warning shot for the entire luxury economy.
After years of record profits fueled by cheap credit and post-pandemic “revenge spending,” the German carmaker’s sudden slowdown shows that even the world’s most coveted brands are losing altitude as global demand cools.
The company reported a €966 million ($1.1 billion) quarterly loss and a 99 percent drop in operating profit for the first nine months of 2025, marking its first decline in years.
the German carmaker’s sudden slowdown shows that even the world’s most coveted brands are losing altitude as global demand cools.
Author summary: Porsche faces profit tumble.