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.
Author's summary: Porsche faces profit drop.