Quick overview

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Ferrari’s stock experienced its worst trading day ever on Thursday after the luxury automaker reduced its electrification goals and adjusted its full-year and 2030 forecasts.

The sports car manufacturer, based in Maranello, Italy, announced during its Capital Markets Day (CMD) event that it had raised its previous forecast of over 7 billion euros in net revenue to at least 7.1 billion euros ($8.2 billion) for this year.

The auto-based company aims to achieve at least 3.6 billion euros in earnings before interest, taxes, depreciation, and amortization (EBITDA), with net revenue expected to be around 9 billion euros by the end of this decade.

Ferrari’s stock price in Milan recovered some losses, closing at 354 Euros, which is a 15% decrease. This marked Ferrari’s worst trading day since the company went public on the Milan stock exchange in early 2016.

Similarly, the New York Stock Exchange saw its worst trading day since Ferrari’s October 2015 initial public offering, with shares closing 15% lower at $407 per share.

Previously, the largest one-day drop occurred in February 2016, when the stock fell by 12.04%. Currently, with a market capitalization of nearly $77 billion, the U.S.-listed shares are approximately 4% down year-to-date. Analysts at Citi noted in a research report that Ferrari’s guidance appears conservative and is below their ‘lower growth case’ estimates from the CMD preview.