Ferrari Reduces Ambitions for Electric Vehicle Production
Ferrari has recently scaled back its ambitions for electric vehicle (EV) production, marking a significant shift in strategy. The Italian automaker unveiled its first EV, the Elettrica, but then revealed plans to cut its electrification targets. By 2030, Ferrari now aims for just 20 percent of its fleet to be all-electric, down from an earlier goal of 40 percent.
Stock Market Reaction
The announcement disappointed investors, leading to a notable decline in Ferrari’s stock price. Following the news, shares dropped by 15.4 percent to €354 on the Milan stock exchange, marking the company’s worst trading day. In the New York market, the decline was slightly less severe at 15 percent, equating to $407.38 per share.
Financial Forecast Adjustments
Ferrari’s adjusted financial outlook reflects these changes. The firm has revised its net revenue forecast for the current year from €7 billion (approximately $8.1 billion) to €7.1 billion (about $8.2 billion). Furthermore, the company anticipates achieving a net revenue of €9 billion (around $10.4 billion) by 2030, according to current exchange rates.
Market Trends in Luxury EVs
This adjustment in Ferrari’s electric vehicle strategy aligns with broader market trends. The demand for high-end EVs appears to be weaker than expected. Other luxury manufacturers, including Lamborghini, are also reevaluating their electric offerings. Lamborghini is reportedly considering turning its upcoming EV, the Lanzador, into a hybrid model instead.
Changing Preferences Among Buyers
Luxury car buyers have shown less enthusiasm for high-end electric vehicles than initially projected. Analysts express concerns regarding the compatibility of EVs with brands known for performance and luxury, like Ferrari. As superficial interest wanes, the premium automotive market appears to be shifting its focus.
- Ferrari’s new EV strategy aims for 20% electric vehicles by 2030.
- Stock fell 15.4% in Milan and 15% in New York following the announcement.
- Revised revenue forecast for 2023 set at €7.1 billion.
- Future net revenue expected to reach €9 billion by 2030.
- Lamborghini re-evaluating plans for hybrid vs. electric models.
This series of events illustrates how quickly the landscape for luxury vehicles can change, especially as consumer interests evolve. Ferrari’s reconsideration of its electric goals provides insight into the challenges faced by premium automakers venturing into the electric future.
