Porsche EV Cost Crisis: Will the Electric 718 Boxster/Cayman Be Shelved?

Is Porsche hitting the brakes on electrification? As one of the world’s most coveted performance brands wrestles with soaring EV development costs and slowing Chinese demand, new CEO Michael Leiters is reportedly considering scrapping the highly anticipated electric versions of the 718 Boxster and Cayman. This potential pivot away from an all-electric future for its entry-level sports cars speaks volumes about the immediate financial headwinds facing premium automakers. This is the central question facing investors and enthusiasts: Is the Porsche electric 718 project dead before it even launched?

For Western markets, this news signals a significant recalibration within the German luxury segment. Porsche, which had already discontinued the gasoline-powered 718 series in 2025 (with starting prices around €70,000 or $82,754), planned to reintroduce the iconic Boxster and Cayman as BEVs as early as 2026. Now, the entire line hangs in the balance due to what sources describe as ballooning costs and development delays.

The Financial Squeeze: Why Porsche is Rethinking its EV Bet

The rumored review of the electric 718 is not happening in a vacuum. It is a direct consequence of Porsche’s broader strategic and financial struggles across global markets.

• China Slump: Declining sales in its crucial Chinese market are a primary driver of the budget strain.
• EV Strategy Reversal: The cost associated with walking back more aggressive EV targets has already cost the brand up to €1.8 billion in operating profit expected for 2025.
• US Tariffs: The automaker is also grappling with import tariffs in the United States, its largest single market.

New CEO Michael Leiters, who took over in January, is under immense pressure to control spending while also dealing with underutilized factory capacity due to weaker-than-expected EV uptake overall. The company’s stock performance reflects this uncertainty, as the shares have seen a notable year-to-date decline.

The Hybrid Complication: A Potential Lifeline or Further Delay?

Adding complexity to the decision is the discussion around introducing a Plug-in Hybrid (PHEV) version of the 718 instead of, or alongside, the pure EV. For a sports car brand, maintaining driver engagement is paramount, and some speculate that the EV version might not have delivered the desired driving dynamics compared to its celebrated gasoline predecessor.

However, a PHEV on the existing EV platform would require entirely new underpinnings, potentially delaying the project by years. This creates a massive risk: by the time a delayed PHEV arrives, the technology itself might already be perceived as outdated by an evolving market.

Expert Analysis: What This Means for the Western Auto Market

For Western investors, the potential cancellation of the Porsche electric 718 underscores a critical theme we are seeing across the premium segment: EV adoption is bifurcating. While volume brands push mass-market BEVs, high-performance niche models face scrutiny over development costs versus attainable performance targets.

Porsche’s previous gas-powered Boxster and Cayman models sold well in their final year, with combined sales rising 15% to 23,670 units in 2024, highlighting the enduring appeal of the traditional configuration.

If Leiters proceeds with the cancellation, it will be interpreted as a strong signal that Porsche is pivoting back to prioritize high-margin, lower-risk internal combustion engine (ICE) and hybrid development to stabilize near-term profits, even if it means slowing the pace of full electrification. This strategy mirrors similar cost-control measures seen across parent company Volkswagen Group. See our analysis on Porsche’s current sales mix and EV demand hurdles.

Key Takeaways for Stakeholders

The final decision from Leiters will be a landmark moment for Porsche’s go-forward strategy:

• Performance vs. Purity: Will Porsche sacrifice its pure EV sports car for a safer, more profitable hybrid variant?
• Cost Discipline: The move signals a hard pivot toward financial discipline under the new leadership.
• Market Signal: It suggests that even at the pinnacle of performance, the economic reality of current EV infrastructure is forcing OEMs to compromise.

The pressure on Leiters is clear: control spending, reassure investors (whose confidence was recently shaken, leading to an exit from the DAX index), and deliver products that maintain Porsche’s coveted brand cachet. The fate of the electric 718 is currently the highest-stakes internal deliberation for the brand.

For more on the industry-wide EV slowdown, follow analysis from trusted sources like Reuters and Bloomberg as this story develops.