What is the story about?
What's Happening?
Ferrari's shares fell sharply after the company presented a slower growth trajectory and reduced electric vehicle (EV) targets at its Capital Markets Day. The company projected revenue of at least $10.7 billion by 2025 and about $9 billion by 2030, with EBITDA of at least $3.6 billion. Analysts had anticipated more aggressive financial targets. Ferrari also revised its 2030 EV share to 20%, down from a previous 40%, citing customer demand and market conditions. The company's lineup will focus on a balance between combustion and hybrid models.
Why It's Important?
Ferrari's conservative approach to EVs and its revised financial guidance have raised concerns among investors about the company's ability to leverage near-term growth opportunities. The decision to lower EV targets reflects market realities and customer preferences, but it may limit Ferrari's competitiveness in the rapidly evolving automotive industry. The company's strategy could impact its market position and investor confidence, especially as competitors pursue more aggressive EV goals.
What's Next?
Ferrari plans to launch its first EV, the elettrica, in 2026, alongside a new supercar release that could bolster profits. The company's focus on hybrid and combustion models suggests a cautious approach to electrification, potentially affecting its long-term growth prospects. Investors and analysts will closely monitor Ferrari's ability to adapt to market demands and execute its strategic plans effectively.
AI Generated Content
Do you find this article useful?
