Ferrari Stock Plunges 16% Despite Unveiling First Electric Car: Guidance Disappointment Overshadows EV Milestone
Ferrari’s highly anticipated unveiling of its first fully electric vehicle, the “Elettrica” supercar, failed to ignite investor enthusiasm, as shares plunged 16% on October 9, 2025—the company’s worst trading day on record. The Milan-listed stock tumbled to €380, erasing €12 billion in market value, before paring losses to close down 13.2%, while U.S.-listed shares dropped over 14%. Despite the excitement around the EV launch, investors were disheartened by Ferrari’s conservative long-term guidance, including a slashed 2030 electric vehicle sales target from 40% to 20% of total output and delays in key model rollouts.
CEO Benedetto Vigna emphasized the Elettrica’s performance heritage during the Maranello event, but the market focused on modest 2025 forecasts: €7.1 billion in revenue and €8.80 per share profit, below analyst expectations. This setback comes as Ferrari navigates the luxury EV transition amid global electrification pressures, highlighting tensions between brand exclusivity and volume growth. This comprehensive analysis explores the plunge’s causes, immediate fallout, historical context, broader impacts, future outlook, and more, providing a full picture of Ferrari’s electric pivot.
Why Ferrari’s Stock Plunge Despite EV Unveil Matters
The 16% drop underscores investor skepticism toward Ferrari’s EV strategy, where maintaining premium pricing and limited production clashes with aggressive electrification demands from regulators and rivals like Porsche. The Elettrica, a 1,000-hp beast with a 0-60 mph time under 2 seconds, showcases Ferrari’s engineering prowess, but the revised 20% EV target by 2030 signals a cautious approach to avoid diluting the brand. This matters for the $500 billion luxury auto sector, where EV adoption is accelerating—Porsche aims for 80% by 2030—potentially pressuring Ferrari’s 15% EBITDA margins. For shareholders, it raises questions about growth sustainability, as the company forecasts only 5-7% annual revenue increases through 2028. Globally, it reflects broader EV market jitters, with Tesla’s recent dips amid competition, but also highlights Ferrari’s unique resilience through exclusivity.
Key Highlights of the EV Unveil and Stock Reaction
- Elettrica Specs: 1,000 hp, sub-2-second 0-60, 800 km range; production starts 2026.
- Guidance Cuts: EV sales to 20% by 2030 (down from 40%); delayed Daytona SP3 successor.
- Stock Impact: Milan shares -16.1% intraday; U.S. ADR -14%; €12B market cap loss.
- 2025 Outlook: €7.1B revenue, €8.80 EPS (below €7.2B/€9 consensus).
- Event Venue: Maranello headquarters; Vigna stresses “no compromises” on performance.
Latest Events Surrounding the EV Launch and Stock Plunge
Elettrica Unveil Event on October 9, 2025
Ferrari hosted the global reveal at its Maranello factory on October 9, 2025, showcasing the Elettrica’s in-house battery and chassis tech to media and investors. Vigna touted it as “the most powerful Ferrari ever,” but the Q&A focused on production limits to preserve exclusivity.
Immediate Market Sell-Off on October 9, 2025
Shares cratered within hours of the guidance reveal, with Milan trading halting briefly due to volatility. By close, the stock was down 13.2%, its worst day since 1989. U.S. ADRs mirrored the drop, erasing €12 billion in value.
Analyst and Media Reactions (October 9, 2025)
Jefferies downgraded the stock to “Hold” on October 9, 2025, citing “disappointing 2030 targets.” CNBC and Reuters coverage emphasized the “overshadowed” launch, with EV delays blamed for the plunge. Social media buzzed with #FerrariEVFail trending briefly.
Ferrari’s EV Journey and Stock Volatility
Ferrari’s electric ambitions trace to 2019 prototypes, with the first hybrid SF90 in 2019 bridging to full EVs. The company has navigated stock swings before— a 20% drop in 2022 amid supply woes—but this 16% plunge echoes the 2014 IPO’s post-launch dip. Historically, Ferrari’s exclusivity model (under 10,000 cars/year) has insulated it from mass-market EV pressures, unlike Tesla’s volume focus. The 2023 Roma Spider hybrid success boosted shares 50%, but 2025’s conservative guidance contrasts with rivals’ aggressive targets, amid EU’s 2035 ICE ban looming.
Timeline of Ferrari’s EV Milestones and Stock Events
| Year | Event | Stock Impact |
|---|---|---|
| 2019 | First hybrid SF90 unveiled | +15% surge |
| 2022 | Supply chain woes cause 20% drop | -20% |
| 2023 | Roma Spider hybrid launch | +50% YTD |
| October 2025 | Elettrica EV reveal with cut targets | -16% plunge |
Impacts of the Stock Plunge and EV Strategy
Market Valuation and Investor Sentiment
The €12 billion wipeout values Ferrari at €70 billion, pressuring Vigna to accelerate EV volume without eroding margins. It signals caution in luxury EV adoption, potentially delaying shareholder returns.
Competitive Landscape
Rivals like Porsche (80% EV by 2030) gain edge, while Ferrari’s 20% target risks regulatory fines but preserves brand cachet.
Economic and Global Effects
Short-term, it cools luxury auto hype; long-term, forces innovation in battery tech, impacting suppliers like Panasonic.
Broader Challenges
EV infrastructure gaps and consumer hesitancy on range could prolong the transition.
Ferrari’s Path in the EV Era
Revised Roadmap and Product Pipeline
By 2028, four EV models planned, ramping to 20% sales; potential hybrids to bridge gaps.
Market Recovery Strategies
Investor days and performance demos to rebuild confidence, targeting €8 billion revenue by 2026.
Sustainability and Innovation
Focus on in-house batteries for 800 km range, aligning with EU norms.
Potential Scenarios for 2030
- Optimistic: 30% EV share, €10B revenue.
- Moderate: Hits 20% target, steady margins.
- Pessimistic: Below 15%, prolonged stock pressure.
Frequently Asked Questions (FAQs)
Why did Ferrari’s stock plunge 16%?
Disappointing 2030 EV targets (20% vs. 40%) and delayed launches overshadowed the Elettrica unveil.
What is the Elettrica?
Ferrari’s first full EV supercar, with 1,000 hp and sub-2-second 0-60, production from 2026.
How does this affect Ferrari’s valuation?
€12B market cap loss, now €70B; worst day since 1989.
What is Ferrari’s new 2025 outlook?
€7.1B revenue, €8.80 EPS, below consensus.
Will Ferrari accelerate EV production?
Unlikely; focus remains on exclusivity with 20% target by 2030.
How does this compare to rivals?
Porsche targets 80% EV by 2030; Ferrari prioritizes margins over volume.
Ferrari’s EV Hurdles: Exclusivity vs. Electrification
The October 9, 2025, 16% stock plunge after the Elettrica unveil exposes Ferrari’s delicate EV balancing act, prioritizing heritage over haste in a charging world.
Key Takeaways
- Launch Disappointment: Elettrica wowed, but guidance tanked shares.
- Target Slash: 20% EV by 2030, delays cited.
- Market Hit: €12B loss, worst day ever.
- Strategic Caution: Exclusivity trumps volume.
