Ferrari NV (RACE) shares plunged 14.86% in intraday trading on Thursday following the luxury automaker's Capital Markets Day event in Maranello, Italy. The sharp decline came as investors reacted negatively to Ferrari's revised 2030 outlook and scaled-back electric vehicle (EV) ambitions.
During the event, Ferrari announced its 2030 strategic plan, which included financial targets that fell short of analysts' expectations. The company projected net revenues of approximately 9 billion euros by 2030, representing a compound annual growth rate of about 5%. This figure came in below the 9.8 billion euros analysts had forecasted. Additionally, Ferrari's adjusted earnings per share target of at least 11.50 euros for 2030 disappointed investors who were anticipating higher profitability.
Perhaps the most significant factor contributing to the stock's decline was Ferrari's decision to scale back its electrification plans. The automaker now aims for electric vehicles to comprise just 20% of its sports car model lineup by 2030, a substantial reduction from its previous target of 40%. This shift in strategy aligns Ferrari with other luxury automakers who have recently tempered their EV goals amid slower-than-expected market adoption.
While Ferrari did unveil the chassis and powertrain for its first fully electric vehicle, the Ferrari Elettrica, set for delivery in late 2026, the overall conservative approach to electrification appears to have dampened investor enthusiasm. The company's new product mix target for 2030 now stands at 40% internal combustion engines, 40% hybrid, and 20% fully electric models.
Despite the negative market reaction, Ferrari slightly raised its near-term outlook. For 2025, the company now expects to report adjusted earnings of at least 8.80 euros per share on revenue of 7.1 billion euros, up from previous guidance of 8.60 euros and 7 billion euros, respectively. However, these modest improvements were overshadowed by the longer-term projections.
The significant stock decline suggests that investors had higher expectations for Ferrari's future growth and electrification strategy. As the automotive industry continues to navigate the transition to electric vehicles, Ferrari's more cautious approach has raised questions about its long-term positioning in the evolving luxury car market.