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