Sounds Like Porsche 718 EV Development Is Going Poorly

Porsche’s lineup is facing uncertainty as development delays and shifting market conditions create challenges for the automaker’s electric vehicle strategy.

The current combustion-powered Porsche 718 Boxster and Cayman are set to be discontinued globally next year, with an all-electric replacement already in the works. However, reports from Automobilwoche suggest that the EV version of the 718 may not launch on schedule due to engineering setbacks.

Porsche’s plan to replace the 718 with an electric model isn't unfolding as hoped, particularly, issues with the mid-mounted battery design are contributing to the delay. Adjustments requested by Porsche from Finnish supplier Valmet Automotive have led to increased costs and setbacks, with disagreements over cost-sharing further complicating matters.

As a result, a gap between the discontinuation of the combustion-powered 718 and the launch of its electric successor is expected. The challenges with the 718 EV are not isolated. The electric-only Cayenne, initially planned for 2026, may also face delays.

Porsche has already tempered its earlier target of having EVs account for 80% of its sales by 2030. With global Taycan sales down 50% through September and demand in China—a key market—falling nearly 30% in the first nine months, the company is re-evaluating its EV timelines.

Chief Financial Officer Lutz Meschke recently indicated that some upcoming EV models might incorporate hybrid or combustion engines instead of going fully electric—a gigantic strategic shift for Porsche as it attempts to balance electrification goals with market realities.

It was known the 911 would remain powered by gas engines into the 2030s, but now the Panamera may also receive a next-generation ICE variant as Porsche adapts to slowing EV adoption. Additionally, the company is exploring extending the Cayenne’s gas engine platform, bypassing limitations of Volkswagen Group’s electric-focused Scalable Systems Platform (SSP).

The writing has been on the wall for some time. Software-related setbacks pushed the electric Macan’s debut back by two years, with the gas-powered version—still on sale—planned to phase out by 2026.

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