Ferrari NV (NYSE: RACE) is pushing to the upside this morning after reporting a 21% annualised increase in its full-year profit to €1.53 billion ($1.58 billion).
More importantly, the luxury sports carmaker said its top and bottom lines will grow further in 2025 on the back of a strong product mix and higher demand for personalization.
Ferrari sees its adjusted EBITDA to print at €2.68 billion this year – a meaningful increase from €2.56 billion in 2024.
On Tuesday, the Italian firm called for a 5.0% growth in its full-year revenue as well.
Electrified vehicles dominated Ferrari’s 2024 shipments
Ferrari is a name that hardly ever pops in a debate related to electric vehicles.
But that doesn’t mean the luxury automaker lacks an aggressive EV strategy.
In fact, it may be far ahead of the legacy automakers like Ford and General Motors on that front.
In 2024, Ferrari delivered six hybrid engine models that made up 51% of its total shipments.
In other words, more than half of the vehicles it shipped last year were hybrid vehicles.
In comparison, electrified vehicles (including hybrids) made up 46% of GM’s total deliveries in 2024 while the percentage sat at an even lower 38% for Ford Motor.
Ferrari stock is up about 4.0% following the release of its full-year earnings on Tuesday.
Ferrari will soon unveil a full electric vehicle
Ferrari is not really a company that “needs” to switch to electric vehicles to stay competitive.
The entire world could move to EVs but its internal combustion engine (ICE) vehicles could still sell like hot cakes because Ferrari is not just about owning a car – it’s more about owning a piece of art, a legacy, and a symbol of prestige.
Still, the luxury sports carmaker is fully committed to switching to electric vehicles.
It, in fact, is expected to unveil its first full EV model by the end of this year, and push it into production in 2026.
Note that Ferrari stock does also pay a dividend yield of 0.57% at writing.
Ferrari wouldn’t have to wait for EV profitability
Ferrari’s plan of launching a full electric vehicle is exciting for investors also because it’s strongly positioned to make a profit on its EV model right off the bat.
That puts it further ahead of other EV companies, many of which are still in pursuit of profitability.
Benedetto Vigna – the chief executive of Ferrari told investors in the earnings release today:
We expect further robust growth in 2025 that will allow us to reach one year in advance the high-end of most of our profitability targets for 2026.
Wall Street currently has a consensus “overweight” rating on Ferrari stock.
Their average price target indicates potential for another 12% upside from current levels.
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