(Bloomberg) -- Ferrari NV shares fell the most in three years after the luxury-car maker reported underwhelming earnings and failed to raise its outlook.

Delivery gains in Europe and the Americas failed to offset a 20% drop in greater China, where tariffs are weighing on the profitability of Ferrari’s made-in-Italy supercars. Adjusted operating earnings were in line with estimates.

“We wonder if some investors were expecting a beat and raise,” said Tom Narayan, an analyst at RBC Capital Markets.

Ferrari fell as much as 6.7% in Milan, the steepest intraday decline since May 2021, and trading was temporarily halted. The stock is still up around 40% in the past year.

Automakers are coming under pressure from the broader economic downturn that is starting to weigh even on resilient luxury consumers. Porsche AG last month warned of a slowdown in China, where buyers have put off purchases as a real estate crisis undermines confidence.

Read More: Porsche Drops After Weak Results Fuel Margin Anxiety

To be sure, Ferrari’s earnings were broadly in line with estimates, and the company confirmed its full-year guidance amid healthy demand for pricey models like the €2 million ($2.2 million) Daytona SP3 and more personalizations.

The results “may have resulted in a touch of disappointment for those new to the stock,” Bloomberg Intelligence analyst Mike Dean said in a note. Ferrari’s high visibility on sales means that an upgrade “was always unlikely.”

While Chief Executive Officer Benedetto Vigna has started a shift toward battery power, Ferrari still is relying on its profitable combustion engine vehicles to protect margins. Adjusted earnings before interest, taxes, depreciation and amortization climbed 13% in the period, to €605 million.

Read More: Ferrari Unveils $423,000 Sports Car With 1960s Bloodline 

Competition to make the transition is intensifying. China’s BYD Co. in February unveiled a high-performance EV priced from around $233,000.

Maranello-based Ferrari is building a factory to make hybrid and electric cars that will be ready next month, with the first fully electric model expected in late 2025.

(Updates with analyst comment in third paragraph.)

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