Key Takeaways U.S. auto demand held up in 2025 as buyers pulled purchases forward amid tariff and pricing uncertainty.EV and plug-in hybrid sales jumped midyear as buyers rushed to lock in the $7,500 federal tax credit.GM, STRT, GTX and REVG are up 50% YTD on restructuring, new programs, M&A, and capital returns.From tariff headlines to shifting EV incentives, the U.S. auto industry navigated sharp swings in sentiment and demand this year. Yet, despite the noise, consumer appetite for new vehicles has remai ...

Market Trends - The transition to EVs (Electric Vehicles) has been losing momentum [1] Industry Impact - The slowdown in EV adoption has implications for the industry [1] Employment - The shift affects jobs within the automotive sector [1] Environmental Impact - The reduced momentum impacts climate goals [1]

Company Overview - Ferrari's shares are under significant pressure following its capital markets day presentation, where it raised long-term financial targets but still fell short of consensus estimates [1][4] - The company has reduced its sales guidance for electric vehicles, leading to a drop in shares to six-month lows [1][4] Financial Performance - Last year, Ferrari sold approximately 13,700 units, indicating a very small sales volume for a luxury brand [4] - The company previously guided for around 7% sales growth for fiscal year 2025, but now projects a longer-term topline sales growth of about 5% [6][7] - The expected delivery date for an all-electric vehicle has been pushed back to late 2026, and the forecast for electric vehicles as a percentage of total production by 2030 has been cut from 40% to 20% [7] Market Reaction - The market is reevaluating Ferrari's valuation due to the widening range of EBITDA growth estimates, which are projected between 30% and 40% [9][10] - The stock is perceived as expensive, and any conservative outlook from the company is being negatively received by investors [11][16] Industry Context - Other luxury brands, such as Aston Martin, are also scaling back their electric vehicle plans, reflecting broader market demand challenges [12] - The transition to an electric vehicle model poses challenges for legacy luxury brands like Ferrari, which must maintain premium pricing while managing capital expenditures and R&D costs [14][15]