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Ferrari’s stock plunges 16% as new 2030 goals underwhelm despite EV reveal

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Ferrari shares tumbled over 16% on Thursday, erasing nearly €13.5 billion ($15.7 billion) in market value, after investors were disappointed by the company’s 2030 financial targets unveiled alongside the debut of its first electric vehicle (EV) platform.

The luxury carmaker raised its long-term revenue goal to €9 billion by 2030, up from €7.1 billion projected for this year. However, analysts called the target “underwhelming” compared to market expectations. “People were expecting a higher top line,” CEO Benedetto Vigna said during the presentation in Maranello, adding that Ferrari preferred realistic goals over overpromising.

Ferrari also scaled back its EV ambitions, now targeting a 2030 lineup comprising 40% internal combustion engines (ICE), 40% hybrids, and 20% fully electric vehicles, compared to the 2022 plan that aimed for 40% EVs.

At the event, Ferrari unveiled the Elettrica, its first electric car, showcasing a production-ready chassis with in-house-designed battery packs and electric motors from its new “e-building” facility in Maranello. The car will feature over 1,000 horsepower and seat four but has no confirmed price or release date yet.

Analysts at Citi said the updated guidance “fell below consensus expectations,” triggering the sharpest one-day decline in Ferrari’s shares since early 2024.

The company reaffirmed plans to launch four new models annually between 2026 and 2030 and expand its luxury lifestyle business with “Tailor Made” centers in Tokyo and Los Angeles and flagship stores in London and New York.

Nissan CEO Makoto Uchida Faces Mounting Pressure Amid Automaker’s Struggles

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Nissan CEO Makoto Uchida is under intense scrutiny as the automaker grapples with declining sales, job cuts, and strategic missteps in its critical markets, including the United States and China. The company, once a leader in electric vehicles (EVs), is now struggling to recover its footing amidst industry-wide disruptions and internal management challenges.

A Crisis in Leadership

In an October meeting with hundreds of Nissan managers, Uchida delivered stark news about the company’s worsening financial position. Weak sales in North America and China were cited as primary factors, alongside the absence of gasoline-electric hybrids in the U.S. market. Nissan’s decision to go “all-in” on EVs in the U.S. left it vulnerable as demand for hybrids surged due to high EV costs and limited charging infrastructure.

Despite being aware of this demand, Nissan delayed adapting its strategy, leading to missed opportunities. The company has sold its e-Power hybrids in Japan since 2016 but will not introduce a plug-in hybrid in the U.S. until March 2026.

“We weren’t able to foresee the rapid rise in demand for hybrids,” Uchida admitted at a November earnings conference, acknowledging management misjudgments.

Restructuring and Cost-Cutting Measures

To address these challenges, Uchida has pledged to cut 9,000 jobs, reduce global production capacity by 20%, and save $2.6 billion in costs. The company has already seen 1,000 U.S. employees accept early retirement and is considering further cuts in Thailand and China, where underutilized factories may be closed.

Nissan’s joint-venture plant in Mexico, COMPAS, is a likely target for downsizing. The facility, shared with Mercedes-Benz, has been operating far below its 230,000-vehicle annual capacity, producing only about 50,000 vehicles.

The Sunderland plant in the UK, however, is expected to remain operational due to recent upgrades. Weakness in the yen has also made Japan a relatively cost-effective manufacturing base, reducing the likelihood of significant cuts there.

Market Challenges and Missed Opportunities

Nissan has struggled to maintain its position in key markets. The company’s market share in China, once a stronghold, has eroded as it failed to keep up with shifting consumer preferences for futuristic-looking hybrids. Similarly, in the U.S., its EV strategy faltered when post-pandemic consumer spending slowed, and hybrids gained popularity.

The Ariya, Nissan’s much-anticipated EV, faced production delays and missed out on a $7,500 U.S. tax credit due to being manufactured in Japan rather than North America.

Nissan’s global sales fell to 3.3 million vehicles in 2022, a 40% decline from 2017 levels. The company’s stock has also plummeted 70% in the last decade, erasing $30 billion in value.

Internal Turmoil and Activist Pressure

Since the 2018 arrest of former chairman Carlos Ghosn, Nissan has been plagued by leadership instability. Uchida is now facing scrutiny from activist investors such as Singapore-based Effissimo Capital Management and Hong Kong’s Oasis Management, who have built stakes in the company.

The CEO has also been criticized internally for his handling of the company’s recovery and strategic direction. Analysts have questioned Nissan’s decision-making for over a year, particularly regarding the lack of hybrids in the U.S. market.

Future Prospects

Nissan is making efforts to pivot. The company plans to launch 34 hybrid and EV models globally by 2030, including a plug-in hybrid for the U.S. by 2026. Additionally, it is exploring partnerships, such as a potential long-term collaboration with Honda on batteries and research.

Despite the challenges, Uchida remains resolute. “I am determined and committed to fulfill my duty as CEO,” he stated during a recent press conference. However, with declining sales, intensifying competition from Tesla and BYD, and increasing scrutiny from stakeholders, the road ahead for both Uchida and Nissan remains uncertain.

Chinese Automakers Ramp Up Hybrid Vehicle Exports to Europe Amid EV Tariff Shift

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Chinese automakers are accelerating exports of hybrid vehicles to Europe, positioning themselves to bypass the European Union’s newly imposed tariffs on electric vehicles (EVs) from China. These tariffs, which aim to protect the EU’s domestic auto industry, do not apply to hybrid models, presenting a strategic loophole for Chinese carmakers like BYD, the country’s leading EV manufacturer.

The Rise of Hybrid Exports

In the wake of EU tariffs of up to 45.3% on Chinese EV imports, introduced in October 2023 to counter alleged unfair subsidies, exports of hybrids have surged. From July to October, hybrid exports from China to Europe more than tripled to 65,800 units compared to the same period last year. Consequently, hybrids accounted for 18% of China’s vehicle exports to Europe in Q3, up from 9% in Q1. By contrast, EV exports dropped slightly from 62% to 58%.

Hybrid vehicles, which combine gasoline and electric power, are gaining traction among European consumers as an economical alternative to fully electric or combustion-engine vehicles, especially during periods of high inflation.

Automakers Adjust Strategies

Faced with slowing car sales in China and high tariffs in North America, European markets are becoming an essential outlet for Chinese automakers. Companies are also exploring local production in Europe to mitigate tariff-related costs. BYD, for instance, is considering manufacturing hybrids and EVs at its Hungarian plant.

New Models Targeting European Consumers

Chinese automakers are rolling out competitive hybrid models for Europe:

  • BYD’s Seal U DM-i, its first plug-in hybrid for the European market, is priced at €35,900, undercutting Volkswagen’s Tiguan PHEV and Toyota’s C-HR PHEV.
  • Geely, China’s second-largest automaker, launched a plug-in hybrid under its Lynk & Co brand in Europe.
  • SAIC Motor is developing a range of powertrain systems tailored to European consumers to offset the high 35.3% tariff on its EVs.

The competitive pricing strategy could reshape the hybrid vehicle market, where European and Japanese automakers currently dominate. However, analysts warn that overly aggressive pricing by Chinese firms may provoke further trade restrictions from the EU.

Global Implications

Japan’s automakers are also leveraging the growing demand for hybrids in Europe, partly to address overcapacity in China. Honda, which experienced a 29% slump in Chinese sales in the first nine months of 2023, is exporting hybrids and EVs from China to Europe.

Chinese automakers’ pivot to hybrids underscores a broader trend of diversification, with companies like BYD and Geely positioning themselves as global players. Nonetheless, their success in Europe will depend on balancing market expansion with regulatory risks.

As the EU hybrid market grows, cost-sensitive European consumers could benefit from these competitively priced models, potentially disrupting the traditional dominance of local and Japanese automakers.