Porsche Considers Axing Electric 718 Sports Cars Amid Budget Pressures, Bloomberg Reports

Porsche AG is evaluating whether to cancel its planned electric 718 sports car line as the German automaker grapples with mounting costs from its ambitious electric vehicle strategy, Bloomberg reported Tuesday, citing people familiar with the matter.

Chief Executive Officer Michael Leiters, who assumed the role on January 1, may scrap the electric versions of the 718 Boxster and Cayman models due to development delays and escalating expenses, according to Bloomberg's sources, who requested anonymity to discuss internal deliberations.

The gasoline-powered 718 models, discontinued in 2025, offered an entry point into Porsche ownership with starting prices around €70,000 ($82,754). The company had initially planned to reintroduce them as electric variants as early as 2026, Bloomberg reported.

According to the report, budget constraints stemming from declining sales in China and the costs associated with reversing Porsche's EV strategy have complicated the project. Discussions about adding a plug-in hybrid variant have further delayed development, as such vehicles require different platform architecture. This could push the timeline back several years, potentially forcing Porsche to launch with outdated technology, the sources told Bloomberg.

While canceling the 718 electric line remains under consideration, Leiters has not made a final decision, according to Bloomberg's sources. The CEO faces the challenge of balancing spending restrictions with concerns about factory underutilization amid weaker-than-expected demand for Porsche's electric vehicles.

A Porsche spokesperson declined to comment to Bloomberg.

The automaker's shares rose as much as 0.6% in afternoon trading in Frankfurt following the report, though the stock remains down approximately 9% year-to-date.

The 718 challenges form part of broader difficulties Leiters inherited from Porsche's struggling EV transition. The company is now pivoting back toward combustion-engine and hybrid models after reducing its guidance four times last year—a downturn that also affected parent company Volkswagen AG. Porsche has warned that correcting its EV course could reduce operating profit by up to €1.8 billion in 2025. The manufacturer also faces import tariffs in the United States, its largest single market.

In 2024, the final full year of production for the combustion-engine versions, Boxster and Cayman sales increased 15% to 23,670 units, Bloomberg reported.

Porsche has committed to improving financial performance after its shares were removed from Germany's benchmark DAX index last year. Leiters' appointment has provided some boost to investor sentiment by ending a controversial dual CEO arrangement under Oliver Blume, who continues to lead Volkswagen. The former McLaren Automotive Ltd. chief has a proven record with hybrid vehicles, including during a previous tenure at Porsche. He will also need to negotiate additional cost-cutting measures with labor representatives.

Chief Financial Officer Jochen Breckner stated in October that while 2025 would represent a low point, returning to double-digit margins would be a target for the years following 2026, according to Bloomberg.