Tyler Crowe

The company now projects its electric vehicles out to 2030 will be 20% of its total lineup versus the original plan of 40% of the lineup.

Also, 2030 projections for its financial performance.

It's adjusting down its operating profit from €3.2 billion to €2.75 billion.

Just for reference, over the past 12 months, adjusted operating profit was $2.1 billion.

Pretty modest growth here.

Now, Ferrari's a luxury brand stock.

I would say masquerading as an automotive stock.

Its shares have traded at a premium to the automotive industry ever since going public, probably with Tesla being the one exception.

That premium is because Ferrari is much more of a consistent performer because of luxury.

With this lower projection, I'm going to toss it to both of you guys, is the stock really worth the rich market premium that it still has?

I want to dig a little bit more into something you were alluding to, Matt, with the luxury pull forward a little bit here.

This is the part of the puzzle I've been trying to figure out when it comes to Ferrari.

This could go out to a little bit more.

Is this really a Ferrari problem or a consumer spending problem?

I'll ask you guys both, but here's what I'm thinking.

On the one hand, Ferrari said it's cutting its EV lineup because it's a pretty clear sign that its projected lineup out to 2030 wasn't really reverberating with its clientele.

It's going back to that traditional conventional engine and that distinct Ferrari sound you hear.

That's what the ultra-wealthy want to pony up for.

when it's this type of business.

Getting back to that makes sense.