Ferrari Stock Drops 13% Amid Fears of Profit Slowdown and Scaled-Back EV Plans

Ferrari's Financial Outlook

• 📉 Ferrari shares experienced a significant 13% drop following the company's investor day, primarily due to lowered long-term profit projections.
• 📊 Analysts had anticipated annual EBITDA growth of around 10%, but Ferrari's new guidance suggests a more conservative 6% growth through 2030.
• ⚠️ This downward revision in long-term guidance is the main driver behind investor concern, despite a raised short-term outlook.

Electric Vehicle Strategy Shift

• ⚡ Ferrari is scaling back its electric vehicle ambitions, significantly reducing its EV targets for the coming years.
• 🚗 The company's initial EV target was for EVs to constitute 40% of its lineup by 2030; this has now been lowered to 20%.
• 🔌 Details were released about the upcoming all-electric Ferrari, the 'electrica', which will feature 1000 horsepower and a 0-60 mph time of 2.5 seconds, but the overall EV rollout is being tempered.
• 🚗 Other high-end sports car manufacturers like Aston Martin, Lamborghini, and Bugatti are also reportedly delaying or reducing their EV plans.

Demand and Market Position

• 📈 Despite the financial outlook concerns, there are no indications of reduced demand at the dealership level, with most models sold out and waiting lists exceeding a year.
• 🧐 The transcript suggests the CEO's approach might be conservative, preferring to underpromise and overdeliver.
• 💰 Ferrari's stock is noted as being highly priced, trading at 40-50 times earnings, making it sensitive to even minor signs of uncertainty.
• 🏎️ The performance of the F1 team was also briefly mentioned as not being particularly strong recently.