Ferrari’s Stock Dips Despite Earnings Beat: Investors Wary of EV Costs and Margin Pressures

Ferrari’s shares fell 3% in early trading despite a strong Q1 earnings beat, as investors questioned the sustainability of its industry-leading margins amid soaring EV development costs.

Key Concerns:

• EV Investment Impact: R&D spend up 40%; EBITDA margin guidance trimmed to 36-37% for 2025 (vs. 38% in Q1).

• Supply Chain Risks: Rare earth shortages could delay EV production.

• Valuation: Shares trade at 35x earnings, premium to luxury peers.

Analyst Reactions:

• Morgan Stanley: “Structural margin erosion from rising EV investments necessitates a cautious outlook,” downgrading Ferrari’s stock to Equal Weight.

• Goldman Sachs: “EV transition critical for long-term growth; maintain Buy.”

Shareholder Response:
“We’re balancing innovation with exclusivity,” assured CEO Vigna during the earnings call.