Ferrari RACE Plunges 4.30% as F1 Struggles and Technical Hurdles Extend Seven-Day Slide

Ferrari’s stock price (RACE) fell 4.30% on October 13, marking a seven-day losing streak and a 24.87% decline since October 6. The share touched its lowest level since February 2024, with an intraday drop of 4.57%. The selloff reflects growing investor concerns over the automaker’s Formula 1 (F1) performance and technical challenges impacting its competitive edge.

On-track struggles have dominated headlines for Ferrari’s 2025 F1 season. The team currently ranks fourth in the constructors’ standings, trailing leader McLaren by 76 points. Persistent gaps to front-runners like Red Bull and McLaren, coupled with a lack of podium finishes in the first three races, have raised questions about the SF-25’s development. Team principal Frederic Vasseur acknowledged the car is “six tenths adrift” of rivals, a gap he claims has narrowed but remains critical to brand credibility. High-profile issues, such as a double disqualification in the Chinese Grand Prix and inconsistent race performance, have further dented investor confidence.

Technical hurdles, particularly with the SF-25’s ride height and suspension setup, have compounded challenges. The team’s struggle to balance low-speed cornering with high-speed stability has led to excessive plank wear—a regulatory requirement—and compromised performance. Recent updates, including a revised floor and diffuser, have yet to resolve these issues. Ferrari’s sensitivity to “dirty air” effects—where aerodynamic turbulence from leading cars hampers overtaking—has also limited race-day results despite strong practice sessions. This dynamic has eroded opportunities for podium finishes, which are vital for maintaining fan engagement and sponsorship revenue.

Financial indicators remain mixed. While Ferrari’s return on equity outperforms industry averages, analysts have assigned a cautious “Hold” rating, reflecting unresolved technical and competitive risks. The automaker’s brand equity and premium positioning are closely tied to F1 success, with underperformance threatening consumer interest and sponsorship value. Recent reliability issues, such as brake problems for Charles Leclerc in Singapore, have highlighted operational fragility. Internal tensions and public frustrations further underscore the team’s struggles to meet expectations.

Management remains optimistic about upcoming upgrades, including a rear suspension overhaul and floor redesign for the Belgian Grand Prix. However, incremental improvements must translate into consistent race results to restore investor confidence. The coming months will be pivotal in determining whether Ferrari can close its performance gap and reaffirm its status as a motorsport powerhouse. Until then, market sentiment remains cautious, with technical and competitive challenges overshadowing financial resilience.