Is Porsche AG still a luxury brand? The question might seem ridiculous or even impertinent to someone yearning for one of its 911 sportscars that cost a minimum of $130,000 and considerably more for the most thrilling and customized derivatives. But after warning on Friday it will barely scrape a profit in 2025 and announcing a big cut to its medium-term earnings ambitions, Porsche’s cachet — at least in the eyes of investors — is now very much up for debate.
The latest profit downgrade — the fourth in quick succession — undermines the German automaker’s claim to have a luxury business model, with negative implications for the way the stock is valued.