Agreeing to delay the all-new 2021 F1 regulations puts Ferrari (NYSE:RACE) facing the likelihood of being at a disadvantage compared to its rivals, says team Boss Mattia Binotto.
As a result of the global coronavirus crisis, this year’s F1 season has been disrupted and forced major alterations for the motorsports’ championship’s future.
It was agreed by F1, the FIA and teams for the introduction of next year’s rule changes to be extended a further year to Y 2022, meaning the current-spec cars will be used again in Y 2021.
The decision is may to hurt the Italian team, but Boss Binotto stressed it had to accept the delay for the sake of F1 and not the team’s ambitions.
“Considering the current baseline and the feedback from the tests, we don’t think we have an advantage with this choice,” Boss Binotto told reporters.
“It was not an easy decision, but it had to be made. It is a special moment, and it was important to give a responsible signal for the future.”
Stability in the regulations now means uncertainty surrounding restrictions on car development, a discussion which Boss inotto says is currently ongoing.
“The regulations for 2021 remain the same, but there will still be room for aerodynamic development,” he added.
“We have yet to define that in detail. We are discussing it with all the representatives of the teams and with the FIA, to understand what will be frozen and what will be open to development.
“But we aim to maintain the DNA of Formula 1, which remains competition and comparison.”
Boss Binotto confirmed that Ferrari would have chosen to withdraw from the Australian Grand Prix following a McLaren crew member testing positive for COVID-19.
“Our position was immediately clear, we would not have raced even if the weekend had taken place regularly,” he said.
“Ferrari would not have raced to ensure the safety of all members of the team. Already in the course of the night we let Charles and Seb know they were free to go home.”
HeffX-LTN overall technical outlook for RACE is Neutral, there is Key resistance 167.47, and support is 151.72, 2 of my Key indicators have turned Very Bullish as the stock is still oversold. Technically, it is Neutral with a Bullish bias.
Ferrari finished at 152.57, -1.72 Tuesday in NY, and shares were raised to Buy from Hold at HSBC.
Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I have called it at it at 200+/share long term, adjusting it to 200/share short term (after the virus) and siding with BAML to 230 long term for now.
Have a healthy day, stay home?