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:
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EV Investment Impact: R&D spend up 40%; EBITDA margin guidance trimmed to 36-37% for 2025 (vs. 38% in Q1).
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Supply Chain Risks: Rare earth shortages could delay EV production.
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Valuation: Shares trade at 35x earnings, premium to luxury peers.
Analyst Reactions:
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Morgan Stanley: “Structural margin erosion from rising EV investments necessitates a cautious outlook,” downgrading Ferrari’s stock to Equal Weight.
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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.
