WSJ Tech News Briefing TNB Tech Minute: Porsche Posts First Loss in Years After Bad EV Bet
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Oct 24, 2025 Porsche faces its first quarterly loss in years due to an early electric vehicle strategy that backfired, fueled by weaker demand and challenges in China. Meanwhile, Alaska Airlines cancels hundreds of flights after a significant data center failure, assuring that no cybersecurity breach was involved. In an unexpected twist, Santee Cooper is negotiating the sale of inactive nuclear reactors to power AI data centers, highlighting the tech industry's energy needs.
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Porsche's Costly EV Bet
- Porsche recorded its first quarterly operating loss since going public after taking a large charge tied to EV investments.
- Sales fell and EV demand softened, amplifying losses amid tariffs and a weak Chinese market.
Sharp Profit Decline Explained
- Operating profit plunged from over €4 billion to about €40 million year-over-year through September.
- The drop reflects weakening EV interest, Chinese market challenges, and tariff impacts.
EV Penetration Is Lower Than Expected
- Only about 23% of deliveries were fully electric and 12% plug-in hybrids, showing slower EV uptake at Porsche.
- Reduced public interest contributed to weaker sales and revenues.