Ferrari (RACE) Shares Plunge 2.86% on Six-Day Slide Amid F1 Struggles, Operational Woes

Ferrari (RACE) shares fell 2.86% on Friday, marking their sixth consecutive day of decline and a cumulative drop of 21.50% over the period. The stock hit an intraday low of $42.30, its weakest level since April 2025, amid growing concerns over the automaker’s Formula One competitiveness and operational challenges. Weakness in the motorsport division, a key brand driver, has amplified investor skepticism about Ferrari’s ability to maintain its luxury automotive premium.

Recent Formula One performances have underscored Ferrari’s struggles to close the gap with top-tier rivals like Red Bull and Mercedes. Drivers Charles Leclerc and Lewis Hamilton acknowledged the team’s decline, with Leclerc noting Ferrari is now “solidly the fourth-fastest team on the grid.” Persistent technical issues, including brake management problems and a lack of performance upgrades, have hampered race strategies. Team Principal Frederic Vasseur admitted the car’s limitations are “frustrating” and highlighted unresolved engineering challenges, raising questions about long-term competitiveness.

The brand’s halo effect—crucial for sustaining luxury car sales and lifestyle offerings—faces risks as prolonged underperformance in F1 erodes fan and sponsor confidence. Both Leclerc and Hamilton have struggled to secure podium finishes, with Hamilton yet to finish in the top three since joining Ferrari. Operational inefficiencies, such as reactive race-day tactics and a lack of strategic flexibility, further highlight systemic weaknesses. Vasseur’s admission of “pain for the team” signals broader morale concerns, compounding pressures on management to deliver tangible improvements before the 2025 season concludes.