Ferrari unveils first electric vehicle and cuts 2030 EV sales target

Shares of Ferrari plummeted by as much as 16% on Thursday following the luxury carmaker’s update to its full-year and 2030 guidance, as well as a reduction in its electrification ambitions.

Analysts expressed disappointment with the new guidance, stating that it did not meet expectations.

The Maranello, Italy-based sports car manufacturer announced during its Capital Markets Day (CMD) event that it anticipated net revenue of at least 7.1 billion euros ($10.7 billion) for the current year, up from a previous projection of over 7 billion euros.

Net revenue is projected to reach around 9 billion euros by 2030, with the company aiming for earnings before interest, tax, depreciation, and amortization (EBITDA) of at least 3.6 billion euros by the same year.

Ferrari’s Milan-listed stock price dropped by 16.1%, before recovering slightly. It was last down by 13.2%, marking its worst trading day since its initial public listing on the Milan stock exchange in early 2016.

Meanwhile, the firm’s U.S.-listed share price fell by more than 12.1% in premarket trading.

Citi analysts mentioned in a research note that Ferrari’s guidance “falls below our ‘lower growth case’ estimates from our CMD preview and reflects conservatism from management, we think.”

They added: “Given guidance, albeit conservative, implies limited operating leverage through the coming cycle we think there is some risk to both consensus EPS and multiples near-term.”

In a separate announcement, Ferrari stated that it would aim for a 2030 sports car model lineup consisting of 40% internal combustion engine (ICE) cars, 40% hybrid, and 20% fully electric vehicles.

Ferrari mentioned that the adjusted target, which is lower than the previous goal of achieving 40% EV sales by the end of the decade, was influenced by a client-focused approach, current market conditions, and anticipated changes.

This shift occurred as the Italian carmaker revealed the technology powering its inaugural electric vehicle. Ferrari unveiled the production-ready chassis and powertrain of the “elettrica” during a technology and innovation workshop, announcing plans to commence deliveries of the model by late 2026.

The finalized car is set to be launched at a global premiere next year.

“With the new Ferrari elettrica, we once again affirm our commitment to progress by combining technology expertise, design creativity, and manufacturing craftsmanship,” stated John Elkann, executive chairman of Ferrari.

Several major car manufacturers have recently revised their EV sales targets due to factors such as a lack of affordable models, slower-than-expected deployment of charging infrastructure, and intense competition from China.

For example, Sweden’s Volvo Cars abandoned its heavily promoted plan to exclusively sell EVs by 2030, citing the need to be “pragmatic and adaptable” in response to evolving market dynamics.

Ferrari, with its current active client base reaching 90,000, a 20% increase compared to 2022, also revealed its intention to introduce an average of four new cars annually between 2026 and 2030.

JPMorgan analysts expressed optimism following the strategic initiatives outlined in Ferrari’s 2030 Strategic Plan.

“We have high confidence in the company’s ability to execute its long-term strategy given the strong demand that currently exceeds supply,” noted JPMorgan analysts in a research report on Thursday.

“We also believe that CEO Benedetto Vigna’s leadership style, which emphasizes collaboration to accelerate innovation adoption, positions the company well for success. The imminent launch of a new Supercar could further boost profitability,” they added.

— Contributions to this report were made by CNBC’s Michael Bloom.