Ferrari Shares Plunge 11.11% on Tariff Adjustments and Margin Concerns as $1.03 Billion Volume Surges to Top Daily Turnover Ranks

On July 31, 2025, Ferrari (RACE) shares fell 11.11% with a trading volume of $1.03 billion, marking a 589.13% increase in daily turnover compared to the previous day. The stock’s decline represented its largest single-day drop since the 2016 initial public offering, despite the company maintaining its earnings guidance for the year. The sharp selloff followed announcements of price adjustments in the U.S. market, where tariffs on EU-manufactured goods are set to decrease from 27.5% to 15%.

Analysts highlighted growing concerns over Ferrari’s ability to sustain high profitability amid slowing sales growth and margin compression. Citigroup noted that while the company reported robust EBIT and EBITDA figures in Q2 2025, the focus has shifted to whether it can maintain margins as average selling prices and shipment volumes decelerate. Ferrari plans to reduce price compensations introduced in April for U.S. models, aligning with the expected tariff reduction. Despite these adjustments, the market reacted negatively, reflecting skepticism about long-term margin resilience.

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