Ferrari shares drop 16% after guidance comes below estimates

By Mucahithan Avcioglu

ISTANBUL (AA) - Italian luxury carmaker Ferrari's shares plunged more than 16% Thursday after the firm's updated guidance for this fell short of the market expectations.

Ferrari said that it expects net revenue of at least €7.1 billion ($8.24 billion) this year, up from a previous forecast of more than €7 billion ($8.12 billion).

The company is also aiming for earnings before interest, tax, depreciation, and amortization (EBITDA) of at least €3.6 billion by 2030, with net revenue of approximately €9 billion.

The announcement caused a 16% decline in the price of Ferrari's Milan-listed shares, while the automaker'S US-listed shares fell more than 14% during premarket trading.

- Ferrari's maiden EV

Ferrari also stated in a different update that it plans to have 40% of its sports car models be internal combustion engine (ICE) cars, 40% be hybrids, and 20% be entirely electric by 2030.

The Italian carmaker stated that a client-centric strategy, the existing climate, and its anticipated evolution are the reasons behind the updated objective, which is lower than the previous one of 40% electric vehicle (EV) sales by the end of the decade.

The update came as the Italian automaker revealed the technology that would power its first electric vehicle (EV). During a technology and innovation workshop, Ferrari showcased the "elettrica"'s production-ready chassis and powertrain, announcing that sales will begin in late 2026, according to CNBC.

The finished automobile is planned to be unveiled during a global premiere next year.

Ferrari's Executive Chairman John Elkann said, “With the new Ferrari elettrica, we once again affirm our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing."