Ferrari will add electric car production line

Ferrari cultivated one of the world’s most valuable brands long before it staged a smash success initial public offering in 2015.

While the company continues to post enviable profit margins, its shares have underperformed recently in part due to concerns about its late start in the EV race and how much playing catch-up will cost.

The stock has dropped 22 percent this year in Milan, trailing Italy’s benchmark stock index and its European automotive peers.

“The focus is on the company’s electrification strategy and how its technology can adapt to a changing world, as well as on its strategy to pursue value over volume and what saturation, if any, they identify,” said Swetha Ramachandran, who manages GAM’s Luxury Brand Equity Fund.