• Ferrari shares tumbled as much as 10.6% on July 31, 2025—potentially their worst single-day decline since the company's 2016 listing.
  • The luxury automaker reported softer-than-expected sales growth and lowered its full-year adjusted EPS outlook to at least €8.60, below the €8.99 analyst consensus.
  • Despite a 6% rise in Q2 EBITDA to €709 million and partial relief from U.S.-EU tariff reductions, flat shipments (3,494 units) and muted revenue growth (4% YoY) spooked investors.

A Rare Stumble for the Prancing Horse

Ferrari NV's stock skidded sharply in early trading after the Maranello-based automaker delivered a mixed earnings report that highlighted resilient profitability but underwhelming volume growth. The drop briefly erased over €10 billion in market value from the €104 billion company, with technical indicators flashing bearish signals in the short term.

"The market is reacting to the guidance cut and lack of shipment momentum," said one Milan-based analyst who asked not to be named due to company policy. "Ferrari's premium pricing power remains intact, but investors expected more upside given the tariff relief."

The U.S.-EU trade deal, which reduced levies on European car imports, provided some margin relief but failed to offset concerns about softening demand in key luxury markets. While Ferrari's Q2 revenue grew 4% year-over-year to €1.48 billion, it fell slightly short of estimates. Shipments were nearly flat at 3,494 vehicles, compared with 3,484 a year earlier.

Pricing Power vs. Growth Concerns

Management emphasized the company's ability to maintain premium pricing—a hallmark of Ferrari's brand strength—with EBITDA margins holding steady at around 48%. However, the lowered full-year EPS forecast suggests headwinds in converting that pricing advantage into meaningful earnings growth.

The reaction mirrors recent pressure on peers like Porsche AG, which also trimmed its guidance amid industry-wide softness. Unlike Porsche, however, Ferrari had largely sidestepped prior sell-offs due to its ultra-high-end positioning.

Some analysts see the dip as overdone. "This is a knee-jerk reaction to a guidance adjustment, not a fundamental breakdown," argued another equity researcher. "The brand's exclusivity and pricing power haven’t eroded."

Ferrari did not immediately respond to requests for additional comment. Trading volume was more than triple the 30-day average as of midday in Milan.