From gas guzzlers to battery hustlers

All the Charles Leclerc fans out there must be pleased: Ferrari is having a moment.

The sports car maker just reported earnings that beat expectations on both the top and bottom lines, and reaffirmed its full-year guidance. But the stock still fell 3.97% as investors zeroed in on a 4.4% year over year drop in deliveries. Management said the decline was due to a planned model transition, and added that the Iranian conflict had no impact, as deliveries were shifted across regions.

Notably, the results land just weeks before Ferrari’s May 25 debut of the Luce, its first fully electric vehicle. Ferrari is optimistic about the new EV’s reception, though sports car enthusiasts have been vocal about their disdain—not for EVs themselves, but for the car’s Apple-inspired design choices.

Ford charges ahead

Ford is also leaning further into EVs, even as the path forward remains costly and uncertain: The company has racked up roughly $19.5 billion in EV-related restructuring charges, while facing headwinds ranging from the rollback of US consumer incentives to internal leadership turnover.

Still, the automaker is pressing ahead with its new “Universal Electric Vehicle” (UEV) platform, which it hopes will underpin its next generation of models. It’s a key part of the plan to bring its loss-making Model e unit to breakeven by 2029, and better compete with market leaders like Tesla and Chinese automakers.

A growing EV market

The EV push is coming at a good time. In March alone, new EV sales rose 20%, while used EV sales surged 54%, according to Bloomberg. Europe saw particularly strong momentum, with France, Germany, and the UK collectively recording a 44% increase in EV purchases year over year.

Part of that strength comes from higher gas prices pushing consumers toward alternatives, alongside a wave of more affordable Chinese models entering global markets.

China, in particular, continues to lead the space, now accounting for about 23.6% of global EV market share—up roughly 70% over the past five years. Its advantage comes down to speed and cost: Chinese automakers can bring new models to market in 20 months, or about half the time of traditional players, while benefiting from strong government support and lower production costs.

Looking ahead, while China has been leading the EV race, legacy players like Ford and Ferrari are leaning in to capture some of that momentum. And with economists expecting the Middle East conflict to keep supporting EV demand—even if gas prices fall—the timing could work in automakers’ favor.—SY