Ferrari Shares Slip As Analysts Flip Short Term Predictions Amid EV Push

Ferrari shares have slipped in light of analyst predictions that the Italian supercar brand’s push towards an EV may leave an uncertain financial outlook for the short term. The forecast was issued by broker Goldman Sachs, who switched their recommendation from buy to sell on Monday.

The news comes not long after Ferrari made the bold move of appointing tech specialist Benedetto Vigna as CEO. Despite a perceived lack of experience in the automotive sector, Vigna’s appointment could point towards a changed focus towards becoming a tech leader for automobiles.

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Ferrari chairman, John Elkann, confirmed in April that Ferrari’s first pure-EV would arrive in 2025—news that seemed like a change in stance for the brand, which had previously seen key figures playing down the possibility of an all-electric car wearing the prancing horse badge in the short-term.

The Ferrari SF90 Spider

Instead, cars like the SF90 hybrid were seen as the future for the Maranello-based marque. But with an increasing number of sports and supercar makers pledging to build dedicated EVs, it would seem an EV Ferrari was less of a choice and more of a necessity.

According to a report by Bloomberg, Ferrari shares slipped as much as 2.9% to 168.90 euros on Monday, taking their year-to-date decline to about 10%.

However, Goldman Sachs underscored how the development of an EV is still essential to future growth. Analyst George Galliers wrote, “While the internal combustion engine and chassis and suspension systems have been core automotive technologies in the past, it is clear that a very different set of technologies will be core technologies in the future.”

Despite calling the push for an EV a positive long-term strategy for the Italian automaker, the broker notes that the move could pressure short-term cash flow and earnings, increasing capital expenditure needed for development. The prediction has also been made, citing a possible cooling off in interest for existing models.