Porsche is making a major strategic pivot, cutting production and raising prices in a bet that scarcity and luxury positioning will rebuild the brand's value after a rough financial stretch.

• Porsche is cutting annual sales targets from 330,000 cars down to 200,000, choosing to sell fewer cars at much higher prices.
• Prices are expected to rise around 20% over the medium term, and the model lineup will shrink by about the same amount.
• The move follows a brutal stretch for the company, including a loss of over $6 billion and a sharp drop in its valuation.
• A new high-end leader, who previously ran engineering at Ferrari and later led McLaren, is now steering Porsche and pushing it toward ultra-high-margin, low-volume supercars, including a new flagship model.
• The company is targeting a big jump in long-term operating returns, betting that exclusivity sells better than volume right now.

Outlook: Expect Porsche to keep shedding lower-margin models and lean harder into premium, limited-production cars as it tries to rebuild profitability.