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Porsche’s EV Misfire: When Legacy Confuses Itself for a Trend

Porsche AG just reported nearly $1 billion in losses, driven by an EV pullback and global tariffs. The market reads it as bad luck; tariffs, demand slump, global EV fatigue. But the deeper signal is cultural: Porsche tried to race in the wrong lane.

To the public, petrol Porsches are heritage objects. They are roaring pieces of art, forever linked to the romance of motion and the lineage of engineering mastery. To the company, however, the latest news shows a brand trying to reinvent itself as a tech player, shifting its soul toward battery packs and software dashboards. It is as if Rolex decided it must become the Apple Watch. In doing so, Porsche risks losing what made it an institution — a heritage brand.

In 19 Consultin's Institutional Value Index framework, Porsche traditionally scores high on Legacy (9.3/10) and Cultural Depth (8.8/10), but only moderately on Adaptability (6.5/10) and Tech Integration (5.9/10). This means its market power is not derived from innovation speed. It is derived from symbolic permanence. Its customers do not buy Porsche for the next software update; they buy it for what it represents: mastery, craftsmanship, continuity. When a legacy brand treats itself as a commodity, it loses its “institutional gravity”, the unseen weight that makes it untouchable in volatile markets.

Porsche should not compete with EV startups. It should compete above them. The right move isn’t to electrify its identity but to electrify its mystique. Continue EV development, but release it as concepts of philosophy, not mere products. As limited editions, auto show prototypes, rolling design statements that test sentiment and signal evolution without disowning tradition.

The brand’s strength lies in curated permanence, not mass transition. The moment Porsche learns that its petrol engines are its “Rolex line” and its EVs are its “Apple experiments,” it regains narrative control. And in the age of narrative economics, that’s where institutional value truly compounds.

 - For legacy companies: stop trying to become the future. Define it.

 - For consultants and innovators: measure not just market fit, but institutional value.

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