The luxury supercar manufacturing corporation Ferrari is having its worst day since going public.
Ferrari shares were traded at $441.94 at 1:02 p.m. local time on the 31st on the New York Stock Exchange (NYSE). The stock price dropped by 11.57% ($57.69) compared to the previous day.
Ferrari's intraday stock price fell to $438.65, recording a decline of over 12%. According to U.S. CNBC, this is the largest drop since its IPO in 2016.
Sales surged as Ferrari announced it would reduce product prices in the U.S. Global investment bank Citigroup noted that while Ferrari has been performing well, there are concerns about its ability to maintain revenue after the price reduction, given the decline in sales volume and average selling price.
Earlier, Ferrari announced it would raise the prices of all vehicles by up to 10% following the U.S. administration of Donald Trump imposing tariffs on the European Union (EU). However, with the tariff rate lowered to 15% under the trade agreement between the U.S. and the EU, Ferrari decided to retract the price increase.