Ferrari stock soars as CEO says company has no plans to go electric

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Ferrari’s shares are firing on all cylinders — and its cars will be guzzling gas for the foreseeable future.

The Italian luxury automaker’s shares surged more than 7 percent Tuesday after it reported strong demand for its highly profitable sports cars such as the Monza.

Ferrari expects earnings at the top of its previous guidance range, clocking in at $1.3 billion, with Chief Executive Louis Camilleri telling analysts that orders were more or less back to pre-pandemic levels.

Camilleri likewise poured cold water on the idea that Ferrari might eventually switch its entire lineup away from gas-powered engines, saying he doesn’t think the company will ever go 100-percent electric.

Indeed, the 65-year-old executive added that he does not believe Ferrari will “see 50 percent within my lifetime.”

“There should be cost savings with EVs longer-term, but they won’t be extravagant,” he said. “We will get larger improvements from focusing on other parts of our business, including Formula 1.”

Ferrari said shipments were recovering well following a seven-week freeze of production during the first wave of the coronavirus earlier this year. Though shipments were down 6.5 percent year-over-year, customers were buying its 12-cylinder vehicles at a clip 15 percent higher than last year.

Despite the coronavirus crisis, Ferrari also is on track with a rapid roll-out of new sports cars aimed at sustaining growth in core earnings and its share price.

A further new model is expected by the end of the year after the company in September launched the Portofino M, a modified version of its top-selling grand tourer.

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