Ferrari's $1B Volume Drop to 104th as Production Limits and Electrification Delays Weigh on Investor Sentiment

Ferrari (RACE) closed on Oct. 13 with a 4.30% decline, trading at $1.00 billion in volume, ranking 104th in market activity. The stock's performance reflects broader sector volatility amid shifting investor sentiment toward luxury automotive equities.

Recent strategic updates from the Italian automaker highlighted production capacity constraints at its Maranello plant, limiting output for its high-margin hybrid models. Analysts noted the company’s cautious guidance on 2025 electrification timelines, which contrasts with aggressive EV adoption targets from key rivals. Supply chain bottlenecks for carbon fiber components also delayed several high-performance variants, potentially affecting fourth-quarter revenue.

Investor focus has shifted to Ferrari’s capital allocation strategy, with recent shareholder meetings emphasizing dividend preservation over share repurchases. The board’s decision to maintain a 75% payout ratio through 2026, despite inflationary pressures, has sparked mixed reactions. Institutional holders accounted for 68% of trading volume during the session, suggesting ongoing position adjustments amid macroeconomic uncertainty.

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