Ferrari NV’s shares experienced their most significant intraday decline in nearly a decade on Thursday, tumbling as much as 14% in Milan trading.
The drop came on the heels of the luxury automaker’s investor day, where it presented a restrained forecast that fell short of investor hopes, particularly regarding its shift to electric vehicles.
The company, known for its high-performance sports cars, slightly upgraded its projections for the current year. .
However, this outlook suggests a compound annual growth rate of around 6%, a noticeable slowdown from the 10% pace implied during the company’s 2022 capital markets event, according to RBC Capital Markets analyst Tom Narayan.
Investors appeared unimpressed, interpreting the guidance as overly cautious, despite Ferrari’s track record of outperforming modest targets.
The stock’s performance reflects broader challenges in the luxury sector, including a general slowdown, uncertainties around tariffs, and stagnant sales in key markets like China. Prior to the event, Ferrari’s shares had remained relatively flat year-to-date.
A key highlight – or disappointment for some – was Ferrari’s revised ambitions for electrification. The company unveiled details of its inaugural electric model, the Elettrica, slated for a 2026 launch.
Yet, it dialed back its EV strategy, projecting that fully electric vehicles will constitute only about 20% of its portfolio by 2030, down from a 40% goal set three years ago.
This adjustment aligns with struggles faced by competitors such as Porsche AG and Mercedes-Benz Group AG, where affluent consumers have shown reluctance to embrace battery-powered options.
Despite the immediate backlash, Ferrari’s conservative approach may pay off in the long run, given its history of underpromising and overdelivering.
The company continues to navigate a shifting automotive landscape, balancing its iconic combustion-engine heritage with emerging sustainable technologies.
For more on Ferrari’s first EV glimpse and strategic shifts, industry observers suggest monitoring ongoing developments in the luxury auto sector.
