Core Viewpoint - Ferrari's shares experienced a significant decline in both European and U.S. markets following the release of disappointing earnings guidance, marking the company's worst trading day since its IPOs in respective markets [1][2]. Financial Performance - Ferrari's stock fell nearly 15% to just over $407 in the U.S. market, and over 14% in Milan, dropping about €60 to around €357.60, representing the largest single-day loss since its listing in January 2016 [1][2]. - The company projected revenue of €7.1 billion for the current year, an increase from previous forecasts of just over €7 billion, and expects revenue to reach around €9 billion by 2030, with adjusted earnings of at least €3.6 billion, up from just below €2.7 billion [2]. Analyst Insights - RBC Capital analyst Tom Narayan noted that Ferrari's earnings estimates for 2030 were conservative and fell below previous growth projections, indicating a potential downshift in earnings expectations [3]. - CFRA downgraded Ferrari's stock to a "sell" and reduced its price target from $475 to $350, citing concerns over slowing growth [4]. Management Commentary - Ferrari CEO Benedetto Vigna acknowledged that expectations for higher revenue were not met, emphasizing the importance of executing achievable goals [5]. Market Sentiment - Despite the negative outlook from some analysts, others, such as JPMorgan and Deutsche Bank, expressed confidence in Ferrari's long-term growth prospects, with Deutsche Bank upgrading the stock to a "buy" and raising its price target to €520 [5]. Strategic Shift - Ferrari announced a reduction in its electric vehicle production plans, now targeting a model lineup of 40% internal combustion engines, 40% hybrids, and 20% fully electric cars, down from earlier projections of 40% EV sales [6].