Shares in Porsche fell nearly 5% on Tuesday morning after the German sports car maker cut its sales and profitability outlook for 2024.
Porsche AG announced in a statement that it has lowered its sales and profit forecast for the year to between €39 and €40 billion due to an unexpected aluminium alloy supply shortage.
It previously expected revenues between €40 and €42 billion.
The news sent shares in the company down nearly 5% on Tuesday as investors reacted to the update.
Porsche said that flooding at an unnamed European contractor was the cause, subsequently impacting production of all its models.
Adding to the company’s woes, it is also struggling with low electric vehicle sales this year.
It comes as sales of battery-electric cars declined by 1% in the EU last month, to 156,408, according to latest data from the European Automobile Manufacturers’ Association (ACEA).
This was despite robust annual increases in a number of countries, notably Croatia (+161.4), Czechia (+140.8), and Hungary (+123.8).
Countries that saw the largest year-on-year decline in electric battery registrations were Ireland (-52.2), Romania (-45.3), Latvia (-42.5), and Lithuania (-42.0).
Outside of the EU, Iceland saw a -76.4 decline.
In December, Germany brought an early end to subsidies for buying EVs as part of a 2024 budget deal.