What Sent This High-Flying Ultra-Luxury Giant's Stock 16% Lower Thursday?

Core Viewpoint - Ferrari's stock experienced a significant drop of nearly 16% following the unveiling of its first full-electric model, raising questions about whether this presents a buying opportunity for investors [1][10]. Group 1: Electric Vehicle Strategy - Ferrari is set to invest 4.7 billion euros between 2026 and 2030 to electrify its lineup, with expectations that battery-electric vehicles (BEVs) will account for 20% of sales by the end of the decade [5]. - The company is already partially electrified, with approximately 50% of its vehicle shipments being hybrids [5]. - Competitors like Lamborghini and Porsche are delaying or scaling back their electric vehicle plans due to weak demand, positioning Ferrari uniquely in the market [4]. Group 2: Financial Projections - Ferrari's long-term financial guidance for 2030 fell short of analyst expectations, projecting earnings of 11.50 euros per share on revenue of 9 billion euros, compared to the 9.9 billion euros analysts anticipated [8]. - The company slightly raised its outlook for 2025, expecting a profit of 8.80 euros per share on revenue of 7.1 billion euros [8]. Group 3: Market Position and Brand Strength - Ferrari maintains a strong competitive advantage with high margins and a unique brand image that is difficult for competitors to replicate [10]. - The performance of the Elettrica, Ferrari's first full EV, will be crucial in determining the future success of its electric lineup and its ability to resonate with core enthusiasts [9].