Ferrari, a preferred ride of many ultra-high-net-worth investors, just suffered its worst trading day on record after the luxury automaker scaled back its earnings outlook.
On Thursday, the company lowered its full-year forecast and long-term targets, citing a more measured approach to its EV mandate.
Ferrari now expects net revenue of at least €7.1 billion ($7.7 billion) in 2025 and roughly €9 billion ($9.8 billion) by 2030 — below earlier ambitions tied to its EV rollout.
Adjusted earnings are expected to reach just €3.6 billion ($4.2 billion) in 2030, from €2.72 billion ($3.1 billion) this year.
Analysts at Citigroup said the revised outlook fell short even of their “lower growth case,” calling the tone from management notably cautious.
“Ferrari having its worst day since 2016,” wrote Spencer Hakimian, founder of Tolou Capital Management, referring to the company’s entire history as a publicly traded stock.
“If the rich stop spending here, you can kiss whatever is left of this economy goodbye,” he added.
Ferrari having its worst day since 2016 on horrific earnings.
undefined Spencer Hakimian (@SpencerHakimian) October 9, 2025
If the rich stop spending here, you can kiss whatever is left of this economy goodbye. pic.twitter.com/2mR4OHsEhc
Ferrari has long been viewed as a proxy for wealthy consumer sentiment, a group whose spending typically holds up thanks to rising asset values in stocks, real estate, and art.
The company’s newfound caution, however, suggests that even the luxury segment isn’t immune to shifting economic tides.
Shares of Ferrari (RACE) plunged 15% on Thursday, closing at $407.38, which is their steepest single-day drop since the company went public.
Consumer spending remains resilient
Ferrari’s downshift doesn’t necessarily mean the wealthy are tightening their belts, but it adds to a growing body of evidence that financial strain is creeping up the income ladder, even among high earners.
Earlier this year, Americans earning $150,000 or more annually reported a lower intent to spend, citing persistent inflation, job uncertainty, and high interest rates as key concerns, according to Bain research.
Perhaps more surprisingly, one in five high-income households told Bank of America in a recent survey that they were living paycheck to paycheck.
At the same time, delinquencies have risen among higher earners, according to credit data firm VantageScore. This suggests that even affluent consumers are feeling the pressure of a higher-cost environment.
“We’ve seen significant increases in services cost, like home insurance and auto insurance, and that is hitting the high-income consumer harder than most,” VantageScore CEO Silvio Tavares told CNBC in an interview.
“That’s what’s driving that delinquency rate,” he said.
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