Porsche's Electric 718 Future in Doubt as New CEO Reviews Strategy Amid Cost Pressures
Porsche's much-anticipated electric transition for its iconic 718 sports car line has hit a major roadblock. A Bloomberg report citing company insiders indicates the battery-powered 718 Boxster and Cayman project is under serious review and could be scrapped entirely by newly appointed CEO Michael Leiters.
The move comes as Porsche contends with significant development delays and ballooning costs for the EV platform, alongside broader pressures to streamline operations and improve profitability. The company's electric strategy has faced headwinds, including softer-than-expected sales in the critical Chinese market.
The 718's path to electrification has been notably turbulent. Initially slated for a full electric makeover to replace the combustion-engine models, plans were later amended to potentially offer high-performance internal combustion variants alongside EVs. Most recently, speculation suggested the entire next-generation 718 range might accommodate combustion engines, creating a parallel lineup.
Financial markets reacted cautiously to the news. Porsche's stock saw a brief uptick of 0.6% in Frankfurt trading following the report, but shares remain down approximately 9% since January 2026, reflecting wider investor concerns about the automaker's direction and cost management.
The potential cancellation leaves a noticeable gap in Porsche's portfolio. With the combustion 718 now out of production and 911 prices climbing steadily—the entry-level Carrera now starts above $137,000—the brand risks alienating entry-level sports car buyers. The 718 found strong demand in North America, with 2025 marking its best sales year ever at 6,399 units.
Industry Reactions:
"This is a prudent, if disappointing, strategic pause," says David Chen, an automotive analyst at Bergstrom Consulting. "Porsche needs to prioritize platforms with higher volume and margin potential, like the Macan EV. The business case for a niche electric sports car is incredibly tough right now."
"It feels like a betrayal of their core promise," counters Elena Rossi, a Porsche Club track day organizer. "First, they dangle this electric future for the 718, then they pull the rug out. Enthusiasts who waited are left with nothing. It's a short-sighted move that prioritizes the balance sheet over passion."
"The technology challenge is real," notes Marcus Thiel, a former Porsche engineer. "Packaging a high-performance battery in a mid-engine layout without compromising the 718's legendary handling and weight balance is a monumental task. The costs may simply have proven prohibitive."
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