Assessing the Ferrari Luce World Premiere in Rome

Goldman Sachs maintains a Buy rating on Ferrari following the premiere of the 'Luce', its first BEV, arguing that negative market reactions are overblown. While the Luce has lower specs than cheaper rivals, Ferrari's focus on unique driving experience and its continued commitment to ICE flexibility protect the long-term thesis.

Key Takeaways

• 1.The Ferrari Luce, the brand's first fully electric 5-seater, received a controversial initial reaction, though in-person client sentiment improved after direct interaction with the car.
• 2.Goldman Sachs views the market's negative reaction to the Luce as overblown, noting limited near-term risk to earnings estimates because management and investor expectations were already conservative.
• 3.The Luce's commercial success depends on the unproven proposition that its driving experience can compensate for having lower technical specifications (range, acceleration) compared to cheaper peers like the AMG GT or Porsche eCayenne.

Table of Contents

• The Ferrari Luce: Reaction Overblown; Near- and Long-Term Thesis Intact
• Specials and supercars to drive ASP growth in the near term
• Estimate changes and GS vs consensus
• Valuation & key risks

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