Key Stats for Ferrari Stock
- Price Change for $RACE stock: -15%
- Current Share Price: $407
- 52-Week High: $519
- $RACE Stock Price Target: $532
What Happened?
Ferrari (RACE) stock crashed 15% on Thursday, marking the worst trading day since the luxury automaker went public in October 2015. The Milan-listed shares fell even harder at 15.4%, their steepest drop since listing there in early 2016.
The selloff followed Ferrari’s Capital Markets Day, where the company updated its 2030 strategic plan and scaled back its electric vehicle ambitions. Analysts were underwhelmed by the new financial targets, saying they fell short of expectations.
Ferrari now expects 2025 net revenue of at least 7.1 billion euros ($8.2 billion), up slightly from a previous forecast of more than 7 billion euros. By 2030, the company targets revenue of around 9 billion euros with EBITDA of at least 3.6 billion euros.
Citi analysts said the guidance “falls below our lower growth case estimates” and reflects management conservatism. They warned of risks to consensus earnings estimates and valuation multiples in the near term.
The bigger surprise came from Ferrari’s revised electrification strategy. The company now targets a 2030 lineup of 40% internal combustion engines, 40% hybrids, and just 20% fully electric vehicles. That’s down from a previous goal of 40% EV sales by the end of the decade.
Ferrari blamed the change on a “client-centric approach, the current environment and its expected evolution.” Translation: wealthy buyers aren’t demanding EVs as aggressively as the company initially thought.
The timing is awkward because Ferrari just unveiled the production-ready chassis and powertrain for its first electric vehicle, the “elettrica,” which starts deliveries in late 2026.
Executive Chairman John Elkann called it progress that unites “the discipline of technology, the creativity of design and the craft of manufacturing.”
Ferrari isn’t alone in pulling back EV targets. Volvo abandoned its plan to sell only EVs by 2030, citing the need to be “pragmatic and flexible” amid changing market conditions.
Factors such as the lack of affordable models, slow charging infrastructure rollout, and intense Chinese competition have forced automakers to rethink their aggressive electrification timelines.
See analysts’ growth forecasts and price targets for RACE stock (It’s free!) >>>
What the Market Is Telling Us About RACE Stock
The brutal drop in Ferrari stock shows investors are concerned about both near-term margin pressure and longer-term growth constraints.
The company’s guidance implies limited operating leverage through the coming cycle, which threatens Ferrari’s premium valuation.
Ferrari trades at an elevated multiple to other automakers because of its pricing power, exclusivity, and strong margins. But if management is being conservative with targets and pulling back on EVs, it raises questions about whether the growth story justifies the valuation.
JPMorgan is bullish on RACE stock, stating it has “a great deal of confidence in management’s ability to execute” given that demand far outstrips supply. The investment firm praised CEO Benedetto Vigna’s leadership style and noted that an imminent Supercar launch could “turbocharge profits.”
Ferrari’s strategy remains focused on exclusivity. The company continues to follow founder Enzo Ferrari’s philosophy of selling one car less than the market demands.
Active clients have grown to 90,000, up 20% since 2022, while the automaker plans to launch an average of four new models per year through 2030.
Ferrari is also investing heavily in personalization and lifestyle offerings. New Tailor Made centers are set to open in Tokyo and Los Angeles in 2027, while flagship stores are set to launch on London’s Bond Street and in New York’s Soho in 2026.
Ferrari stock’s 15% plunge reflects concerns that even the world’s most exclusive automaker isn’t immune to the challenges reshaping the industry.
Whether this selloff represents a buying opportunity or a warning sign depends on your confidence in management’s ability to navigate a more demanding environment while preserving Ferrari’s mystique.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!