On September 22, Porsche AG will leave the DAX stock market index, which showcases the forty largest German companies by market capitalization. The decision, announced by Deutsche Boerse during its quarterly review, marks a setback for the luxury sports car manufacturer.
The manufacturer made its debut on the Frankfurt Stock Exchange in 2022, attracting the attention of investors around the world. But the situation has changed radically in the space of a year : Porsche’s share price has fallen by more than a third, leading to the group’s exit from the DAX in favor of Scout24, Germany’s leading online real estate platform. However, this downgrade does not mean that Porsche will disappear from the stock market radar : the manufacturer will now be included in the MDAX, the index reserved for mid-cap companies.
The causes of a spectacular fall
Several factors explain the collapse of Porsche’s share price. First, US tariffs on European cars have severely penalized the brand’s exports. With no production facilities on US soil, the manufacturer is bearing the brunt of these tariff barriers, which are driving up the cost of its vehicles in the United States, one of its key markets.
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Read also > Porsche undergoing major changes : global restructuring and expansion into defense
Featured photo : © Porsche
