Ferrari, Porsche Slide on Outlook

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00:00How Ferrari has traded relative to its peers, particularly over here in Europe, it's just incredible.

00:05I mean, the rise that you've seen since the listing in early 2016, the stock listed a little bit earlier in the U.S.

00:12But this is a name that just has been sort of reliably up and up over the years.

00:19And I think going into this capital markets day, you saw analysts as bullish as they had been in half a decade,

00:26a lot of optimism that surely they were going to have positivity to share.

00:32You know, also sort of early glimpses of the EV that that they're bringing to market next year.

00:37I think, you know, this may have just been a case of of, you know, the sort of street maybe getting ahead of itself.

00:44But also, you know, in fairness to the analysts, you know, some some real conservatism on the part of the company in terms of,

00:51you know, where it sees earnings and how quickly it sees earnings growing relative to, you know,

00:57the last time they had a capital markets day and those numbers not necessarily being, you know,

01:02what what everybody was hoping for coming into today.

01:05It was supposed to be a coming out party for their EV model.

01:08What the electric? I don't even know how you pronounce that, but whatever their electric.

01:13Thank you. That's actually a very logical name for an electric car.

01:15But, Greg, the fact that they did have a complete overshadowing of some of its EVs,

01:23which, by the way, they have targets.

01:25What does it just mean for the future of EVs and the electric car at Ferrari?

01:31Yeah. You know, I think the more sort of the more the time goes by, the more that we see,

01:36you know, even in some cases like here in Europe where, you know, month to month,

01:41we have been seeing growth for EV sales. It's just not been at the sort of level that is needed

01:46to sort of reach these levels that everybody was expecting for, you know, say 2035,

01:52where the EU wanted to phase out combustion cars by then. It's just becoming, you know,

01:58clear by the day that that's not going to happen. And so, you know, how this gets worked out,

02:02especially for some of these lower volume manufacturers, they make the case that, look,

02:06we're building, you know, in Ferrari's case, 10,000, 12,000 vehicles a year. Are you really

02:13going to sort of subject us to these rules when, you know, we're sort of minnows in this much bigger

02:20industry? And I do think that, you know, it looks likelier by the day that they will sort of be

02:27allowed a longer leash for their combustion engines and they're adjusting their product portfolio

02:32plans accordingly. Well, I mean, you've made a comment that I hear like almost daily on Bloomberg

02:36radio in one of our promos that I think is true for the most part. Once people go electric,

02:42they don't tend to go back.