Bad news for Porsche, which bet big on electric cars and got burned, while Ferrari stays profitable by keeping volumes tiny.

• Porsche's yearly profit collapsed 99%, from over $4 billion to near zero, after its electric Taycan flopped and it wrote off billions in EV investment.
• A big reason is China, where a real estate crash wiped out middle-class wealth and local brands now make cheaper, faster cars, so Porsche sales there fell sharply.
• EU rules out of Brussels pushed Porsche toward EVs people did not want; it is now cutting production and swearing off making the beloved 911 electric.
• Ferrari is shielded because it builds only about 13,000 cars a year at $600,000 each, so its new electric model is a low-risk test, not a make-or-break bet.
• Ferrari keeps fat profit margins like a tech company and treats buyers like a club, which protects it from the volume trap Porsche fell into.

Outlook: Porsche is expected to recover by refocusing on its core gas models, while Ferrari's small-batch strategy keeps it insulated from the EV stumble.