Ferrari guidance disappoints as new EV game plan revealed

Core Insights - Ferrari's long-term financial guidance has disappointed investors, leading to a significant drop in stock price [1][4] Financial Projections - Ferrari projects 2025 net revenue to reach or exceed 7.1 billion euros ($8.24 billion), an increase from the previous estimate of over 7 billion euros, but still deemed insufficient by investors [2] - The adjusted EBITDA for 2025 is expected to be greater than 2.72 billion euros ($3.14 billion), up from 2.68 billion euros ($3.1 billion), yet still not meeting investor expectations [2] - For 2030, Ferrari targets revenue of 9 billion euros ($10.4 billion) with adjusted EBITDA of 3.6 billion euros ($4.16 billion) or more, which reflects a compound annual growth rate (CAGR) of only 6%, below the 10% rate forecasted in 2022 [3] Market Reaction - Following the updated guidance, Ferrari's stock fell over 10%, indicating investor dissatisfaction with the company's conservative outlook [4] Electric Vehicle Strategy - Ferrari's initial target of 40% of sales from electric vehicles (EVs) has been revised down to only 20%, with the remainder split between gas-powered and hybrid vehicles [4] - The company attributes this shift to a "client-centric" approach, suggesting that demand for electric Ferraris is not as strong as anticipated [5] - Despite the adjustments, Ferrari plans to launch its EV, the Ferrari Elettrica, in 2026, which will feature a four-seat grand touring design with over 1,000 horsepower [6][7] Executive Statement - Ferrari's executive chair, John Elkann, emphasized the company's commitment to innovation through the integration of technology, design, and manufacturing in the development of the Elettrica [8]