Ferrari investors may have gotten too used to smooth driving.
The luxury sports-car maker isn’t pulling away from the challenges posed by the pandemic quite as effortlessly as some were hoping. Its shares fell 7% in New York Tuesday after the company said it would hit its 2022 financial targets a year late due to Covid-19. Ferrari delayed some spending last year; now it has worked through its delivery schedule enough to expect a knock-on impact on profits next year.
The selloff highlights just how high the stakes are when a stock fetches more than 40 times prospective earnings. If investors are spooked by some relatively minor post-pandemic grinding of gears, they may not be properly prepared for Ferrari’s move into the electric age—a process fraught with much greater risks for a brand based on engine noise.
Chairman John Elkann said last month that Ferrari would launch its first all-electric vehicle in 2025, for the first time putting a timeline on the company’s EV efforts. While the car could be an opportunity to win new customers with a more digital notion of automotive tech, Ferrari will need to find a distinctive approach that chimes with its powertrain-centric heritage.
The company has already built up some experience with batteries, having started deliveries late last year of its first plug-in hybrid, the SF90 Stradale. But taking the internal combustion engine out of vehicles is an altogether bigger challenge. Apart from the question of engine sound, it will be hard for Ferrari to claim leadership in battery and software engineering in the way it can with engines and mechanical engineering. Most likely the company will continue to make plug-in hybrids—often seen as a transitional technology—well into the future.
24World Media does not take any responsibility of the information you see on this page. The content this page contains is from independent third-party content provider. If you have any concerns regarding the content, please free to write us here: contact@24worldmedia.com
Common Mistakes When Using Athletic Field Tarps
High-Performance Diesel Truck Upgrades You Should Consider
Warehouse Optimization Tips To Improve Performance
Fire Hazards in Daily Life: The Most Common Ignition Sources
Yellowstone’s Wolves: A Debate Over Their Role in the Park’s Ecosystem
Earth Day 2024: A Look at 3 Places Adapting Quickly to Fight Climate Change
Millions of Girls in Africa Will Miss HPV Shots After Merck Production Problem
This Lava Tube in Saudi Arabia Has Been a Human Refuge for 7,000 Years
Four Wild Ways to Save the Koala (That Just Might Work)
National Academy Asks Court to Strip Sackler Name From Endowment
Ways Industrial Copper Helps Energy Production
The Ins and Out of Industrial Conveyor Belts