Porsche May Abandon Electric 718 Boxster and Cayman

The electric Porsche 718 may never materialize. According to multiple sources close to the matter, new CEO Michael Leiters is considering outright abandonment of the electric Boxster and Cayman before their scheduled 2027 debut. Development costs have spiraled to nearly €1.8 billion, compounded by plummeting sales and a revised electrification strategy.

"Development costs have exploded to the point where profitability thresholds have become nearly unreachable" — Internal Porsche sources cited by Bloomberg

A Project in Limbo for Years

The saga of the electric 718 has dragged on since 2022. Porsche then announced its entry-level sports cars would go fully electric by 2025. The Mission R concept, unveiled at the Munich motor show in 2021, was meant to chart the course. Yet delays have accumulated relentlessly.

First came the collapse of Northvolt, Porsche's chosen battery supplier, forcing a mid-stream partner swap. Then, facing weaker-than-anticipated demand for EVs, the brand decided to maintain parallel combustion variants. Finally, the notion of adding a plug-in hybrid option muddled development on a platform originally designed exclusively for electric propulsion.

Michael Leiters Faces a Financial Reckoning

Arriving on January 1st, 2026 as successor to Oliver Blume, Michael Leiters inherits a scalding file. The former McLaren boss must restore Porsche's finances, battered by collapsing Chinese sales and cost overruns tied to the electric pivot.

The numbers tell the story: Porsche's operating profit tumbled from €4.035 billion to a mere €40 million across the first three quarters of 2025. Against this backdrop, sustaining a project with runaway costs becomes difficult to defend.

Why Have Costs Spiraled?

Several factors explain this financial downward spiral. Grafting a combustion engine and transmission onto a PPE (Premium Platform Electric) platform conceived for electricity demands substantial structural reworking. It's rather like installing a V8 into a Tesla: technically feasible, yet horribly expensive.

Moreover, delays compound relentlessly. Each additional development year costs tens of millions. Finally, the market for electric sports cars remains opaque. Even the well-established Taycan saw sales plummet 22% in 2025.

What Becomes of the Current 718?

Porsche ceased production of combustion 718 models at year-end 2025, retaining only the radical Spyder RS and GT4 RS variants starting at €162,500. These extreme iterations cannot fill the entry-level slot that base versions once occupied.

Without an electric successor, Porsche would face a gaping void in its lineup. Acquiring a new Porsche sports car would require spending a minimum of $137,850 for a 911 Carrera stateside. That's nearly double what a base 718 cost years ago.

Is the Audi TT Also at Risk?

Abandoning the electric 718 could reverberate across Audi. The forthcoming TT, presented as the Concept C, was meant to share the identical platform as its Porsche cousins. Without this shared foundation, Audi would shoulder development costs alone—a scenario that could imperil its sports car's revival.

That said, Audi has recently denied these rumors, dismissing speculation as unfounded. According to the four-rings brand, the electric TT project remains on track for 2027.

What Alternatives Exist for Porsche?

If electrification is abandoned, Porsche might retreat toward a more conventional approach. Developing a fresh combustion 718 on an adapted platform would consume time, yet cost considerably less than a complex multi-energy project.

Another option would involve deferring the initiative several years—until battery costs decline and demand stabilizes. But this would leave a prolonged gap in the lineup.

When Will a Decision Arrive?

Michael Leiters has not definitively resolved matters, per Bloomberg. Zuffenhausen's teams continue evaluating various scenarios. Yet with present financial pressure, a verdict could materialize within weeks.

Investors appear broadly sympathetic to abandonment: Porsche's share price rose 0.6% following these rumors—a sign markets view development cost reductions favorably.

The 718 nonetheless enjoyed an excellent 2025 in North America with 6,399 units sold—a record. Still, these encouraging figures may not suffice to justify a multi-billion investment in electrification. Porsche's new chief must choose between technological ambition and financial realism.

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