Ferrari Stock Tumbles. Its ‘Elettrica’ EV Reveal Was Overshadowed by This.

The entrance of the Ferrari factory in Maranello, Italy. (FEDERICO SCOPPA/AFP via Getty Images)

Key Points

• Ferrari’s stock dropped 14% in Milan and 13% in the US after its 2030 guidance fell short of market expectations.
• The company projects 2030 adjusted earnings of ․11.50 per share on ․9 billion revenue, below analyst expectations of ․9.8 billion revenue.
• Ferrari revised its 2030 electric vehicle target, now expecting EVs to comprise 20% of its lineup, down from 40% previously.

Ferrari stock was tumbling Thursday after the luxury auto maker’s guidance for 2030 came in more conservative than the market was expecting, overshadowing its reveal of a long-awaited fully electric car.

The company’s Milan-listed shares dropped 14% to just over 358 euros ($416), putting them on track for their worst day on record. U.S. shares were down 13% shortly after the open. The S&P 500 was 0.1% higher.

The selloff came after Ferrari released its financial targets for both the current year and the rest of the decade at a Capital Markets Day in Maranello, Italy.

Ferrari slightly raised its outlook for 2025. It now expects to report a profit of at least €8.80 a share, on revenue of €7.1 billion. The company previously guided for profit of at least €8.60 a share on revenue of at least €7 billion.

Longer-term guidance looked a little soft. In 2030, the company is expecting to report adjusted earnings of €11.50 a share, on revenue of €9 billion. Analysts were expecting revenue of €9.8 billion, according to a FactSet poll.

The company expects most of its profit gains to come from its product mix, limited-edition models, and personalization, with sales volumes contributing to a lesser extent.

Ferrari also hit the brakes on a plan to go electric, after unveiling the chassis and powertrain for its first ever EV, the Elettrica, which will start deliveries in late 2026.

Electric cars will make up just 20% of the sports car model lineup by 2030, the company said. Ferrari had previously guided that 40% of its lineup would be electric by the end of the decade.

Ferrari said that it plans to launch an average of four new cars a year between 2026 and 2030. In 2027, it will open new “Tailor Made” hubs in Tokyo and Los Angeles, to help more customers personalize their cars.

Ferrari shares are up about 43% since the start of 2024, and 11% since Barron’s named it as a stock pick in late November.

Write to George Glover at george.glover@dowjones.com