Ferrari’s Big Selloff Has Investors Asking: What’s The Floor?

Ferrari NV (NYSE: RACE) was once one of the market’s most unstoppable luxury growth stories.

Now the stock is down roughly 36% from its all-time high above $519, leaving investors wondering whether this is simply a temporary reset — or the start of something worse.

The strange part is that Ferrari’s actual business still looks remarkably healthy.

Revenue continues to grow, profit margins remain incredibly strong, and the company’s order book now stretches into 2027. Ferrari is also preparing for the launch of its first fully electric vehicle, the Luce, which could become a major growth driver over the next few years. See how Ferrari’s financials compare to its peers, Ford Motors, Honda Motors, Gogoro, Chijet Motor and, Robo.ai.

But markets care about more than just great products.

Right now, Ferrari is facing several pressures at once: currency headwinds, tariff concerns, softer global luxury demand, and — perhaps most importantly — valuation compression. For years, investors were willing to pay enormous premiums for Ferrari because it behaved more like a luxury brand than a traditional automaker. In a higher-rate environment, that premium is shrinking.

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History suggests this kind of decline is not unusual for Ferrari during periods of macro stress.

The stock fell nearly 30% during the 2018 growth scare and around 35% during the 2022 inflation and rate-hike shock. More recently, tariff fears in 2025 also triggered a significant drawdown.

What’s notable is that Ferrari’s business usually remains resilient even when the stock struggles. Its customers are ultra-wealthy, demand consistently exceeds supply, and the company intentionally limits production to preserve exclusivity and pricing power.

That doesn’t mean the downside is over. If luxury spending weakens further or markets continue punishing expensive growth stocks, Ferrari could still fall more from current levels.

But the long-term bull case hasn’t disappeared.

The stock is correcting.

The Ferrari brand itself probably isn’t.

So What Can You Do For Your Investments?

Panic is a failure of preparation. When a Growth And Demand Scare shock hits, RACE will contract predictably. Recognizing this behavior as a mathematical feature rather than a flaw allows investors to avoid selling at the exact wrong moment.

Incorporating a rule-based and diversified approach, such as the Trefis High Quality Portfolio (HQ), ensures your capital is protected enough to ride out these inevitable structural resets. HQ has returned over 105% since inception.