Stuttgart-based sports car manufacturer Porsche will be removed from the main DAX stock index, Deutsche Börse subsidiary ISS Stoxx announced.

Porsche will be replaced by the online platform Scout24 SE, with the change taking effect on September 22, Euronews reported.

The DAX index tracks the performance of the 40 largest companies listed on the Frankfurt Stock Exchange and is considered a key barometer of the state of the German economy. To be included, companies must meet certain quality and profitability requirements.

Porsche, part of the Volkswagen Group, went public in September 2022 in one of the largest IPOs in German history and was included in the DAX just a few months later. The shares started at €82.50 and reached nearly €120, but on September 4, they were already trading below €45—a 33% drop over the past year.

CEO Oliver Blume told the Frankfurter Allgemeine Zeitung that "the DAX is losing one of Germany's most valuable companies" and promised that Porsche would soon return to the index. 

Despite a market capitalization of nearly €20.4 billion, the manufacturer was severely affected by US tariffs on car imports and weak interest in electric vehicles, forcing the company to abandon its plans to produce its own batteries. In addition, cost-cutting measures, including staff reductions, have already been introduced.

"With Porsche's new course, we have a clear ambition to return to the DAX as soon as possible," Blume emphasized. | BGNES