Ferrari troubles not limited to Formula 1 as shares drop 14%

According to data from CNBC, the Milan-listed stock fell as much as 14.7% in morning trade, while the U.S.-listed Ferrari shares dropped more than 13.4% before the market opened on Thursday.

The Maranello-based manufacturer told investors at its Capital Markets Day that it now expects net revenue of at least €7.1 billion ($10.7 billion) in 2025, compared with its earlier estimate of over €7 billion.

By 2030, it projects revenue of about €9 billion. The update marked a slower long-term forecast, and traders sold the stock hard on the news.

Ferrari also changed its target for its future lineup. By 2030, the company now aims for 40% of its cars to use internal combustion engines, 40% to be hybrids, and 20% to be fully electric.

The earlier plan had been 40% of sales from electric vehicles by the end of the decade. Executives said the change was linked to client demands, the current market, and how the company expects conditions to evolve.

Alongside the new strategy, Ferrari showed off the chassis and powertrain of its first electric model, the elettrica, at a workshop focused on technology and innovation.

The car will be delivered starting in late 2026, with its official launch scheduled for next year. Executive chairman John Elkann said: “With the new Ferrari elettrica, we once again affirm our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing.”

The step back mirrors decisions made by other carmakers. Volvo abandoned its headline plan to sell only EVs by 2030, saying last year that it needed to be “pragmatic and flexible” in the face of changing market conditions.

Ferrari also reported that its number of active clients has climbed to 90,000, up 20% compared with 2022. The company plans to launch an average of four new cars every year from 2026 to 2030, keeping its product pipeline active despite the slower EV rollout.

Analysts at JPMorgan responded with confidence despite the market sell-off. They wrote, “We have a great deal of confidence in management’s ability to execute on its long-term plan given ample evidence that demand currently far outstrips supply.”

They also said CEO Benedetto Vigna’s leadership encouraged collaboration to speed up innovation. They noted an imminent supercar launch could further boost profits.