Ferrari Stock Plunges 16% on Disappointing 2030 Guidance at Capital Markets Day

MILAN, October 9, 2025 – Ferrari (RACE) shares suffered their worst trading day ever, plunging 16% after the luxury automaker’s 2030 guidance disappointed investors at its capital markets day ¹. The selloff reflected concerns that the Italian supercar maker’s long-term profitability targets fell short of Wall Street’s lofty expectations.

Ferrari shares dropped 16%, worst day since 2016 IPO
2030 EBIT guidance of 2.75 billion missed analyst expectations
Electric vehicle sales target scaled back from previous projections

Market Reaction & Context

The stock fell as much as 60 to around 357.60 in Milan trading, marking Ferrari’s steepest decline since the company listed shares in January 2016 ². The selloff wiped out all of Ferrari’s 2025 stock gains, highlighting investors’ sensitivity to any signs of moderation in the premium automaker’s growth trajectory ³.

Ferrari targeted earnings before interest and tax (EBIT) of at least 2.75 billion by 2030, a figure that analysts viewed as conservative given the company’s premium positioning ⁴. The guidance update came alongside the unveiling of Ferrari’s first fully electric vehicle, the “Elettrica,” though the EV reveal was overshadowed by concerns about the financial outlook.

Electric Vehicle Strategy Shift

The luxury carmaker also scaled back its electric vehicle sales projections for 2030, signaling a more cautious approach to electrification compared to previous forecasts ⁵. This adjustment reflects ongoing challenges in the premium EV segment and Ferrari’s commitment to maintaining exclusivity.

Despite the stock decline, Ferrari nudged its full-year 2025 guidance slightly higher, indicating near-term business fundamentals remain solid ⁶. However, investors appeared focused on the longer-term growth trajectory rather than immediate performance improvements.

Analyst Perspective

The market reaction underscored the high expectations surrounding Ferrari’s transformation strategy and expansion into new segments. Analysts had been anticipating more aggressive targets given the company’s strong brand equity and pricing power in the luxury segment.

The disappointing guidance comes as Ferrari navigates the transition to electrification while maintaining its position as the world’s most valuable automotive brand by market capitalization. The company’s premium valuation has historically reflected investors’ confidence in its ability to command exceptional margins.

Outlook

Ferrari’s capital markets day was intended to showcase the company’s long-term vision, but instead highlighted the challenges of sustaining hypergrowth rates in a maturing luxury automotive market. The stock’s dramatic decline suggests investors may need to recalibrate expectations for the Italian icon’s next phase of expansion.

The selloff positions Ferrari shares at their lowest levels in months, potentially creating an entry point for value-oriented investors betting on the company’s enduring brand strength and operational excellence.

Not investment advice. For informational purposes only.