Porsche's Electric Sports Car Ambitions in Jeopardy as New CEO Reviews 718 EV Program
Porsche's transition to an electric future has hit a significant roadblock. The German automaker is reportedly considering shelving its planned electric 718 Cayman and Boxster models, casting doubt on a cornerstone of its electrification strategy.
According to sources familiar with internal discussions cited by Bloomberg, the electric 718 program is grappling with escalating costs and persistent development delays. The project's viability is now under formal review by Michael Leiters, who assumed the role of CEO on January 1, 2026, following the ouster of Oliver Blume.
The potential move comes after a turbulent period for the program. Whispers of trouble emerged in late 2024, with one engineer stating development was "well behind schedule." A major setback occurred last May when battery supplier Northvolt's bankruptcy forced a temporary pause. In a telling shift, Porsche confirmed in September that the next-generation 718 would continue to offer internal combustion engines, positioning them above the now-uncertain electric variants.
Porsche declined to comment on the speculation when contacted. The deliberation occurs against a challenging backdrop: the automaker is confronting steep sales declines in the critical Chinese market and new tariff pressures in the United States.
Industry Analysis: The potential cancellation reflects a strategic recalibration. Developing a low-volume, performance-focused EV with bespoke architecture is exceptionally costly. With financial headwinds mounting, Porsche may be prioritizing resources toward more profitable SUV lines and its flagship electric Taycan. This episode underscores the broader industry struggle to make compelling—and commercially viable—electric sports cars.
Reader Reactions
Klaus Richter, Automotive Engineer (Munich): "This is a prudent, if disappointing, business decision. The economics for a niche EV sports car are brutal. Porsche must secure its core profitability first."
Elena Rossi, EV Advocate (San Francisco): "It's a betrayal of their mission. They promised an electric future for iconic models. This hesitation shows a lack of commitment to real innovation beyond their SUVs."
David Chen, Portfolio Manager (Hong Kong): "The market will applaud fiscal discipline. Investors were worried about unchecked R&D spend. Leiters is signaling a focus on margin protection."
Sophie Laurent, Porsche Club President (Lyon): "My heart sinks. The 718 is the gateway to the brand. An electric version would have been glorious. I hope this is just a delay, not an end."