Lewis Hamilton has announced he will join Ferrari (NYSE:RACE) for the 2025 F1 season, sending shockwaves through both the sport and the car industry, reports revealed on Thursday.
Hamilton, who has won seven world titles at Mercedes since joining in 2013, will leave the Brackley-based Formula One team to replace Carlos Sainz at Ferrari.
Shares in the US- and Milan-listed Ferrari, which covers the luxury car manufacturer's overall business, lifted more than 5% on the back of the news and the company's new financial guidance.
The Italian sports car group said it expects profits in the next three years to be higher than previously expected due to strong demand for its first SUV-style model helped it generate record earnings for 2023.
While Mercedes and Ferrari (NYSE:RACE) are both yet to confirm the move, several news outlets and F1 journalists have confirmed the legitimacy of the deal.
The Mercedes AMG Petronas F1 team is owned in three equal parts by the German car manufacturer, team principal Toto Wolff, and Jim Ratcliffe’s INEOS.
Hamilton, who is the most successful F1 driver alongside Michael Schumacher, will join Charles Leclerc at Ferrari (NYSE:RACE) after he completes the upcoming season, which starts later this month, with Mercedes.
Rumours have circulated before about Hamilton leaving Mercedes, especially when his contract came to an end after last season, but the Brit penned a two-year extension that could now be curtailed.
In January, Ferrari team boss Wolff signed a three-year contract extension until the end of the 2026 season, dispelling rumours that might join Ratcliffe at Manchester United.
In its financial results published today, Ferrari reported 17.2% revenue growth to €5.9 billion for 2023, with shipments rising 3.3% to 13,660.
Underlying earnings accelerated 31.8% to €1.6 billion, with the Italian group having operated on an EBIT margin of more than 27%.
Looking forward, the group hope to see net revenues rise above €6.4 billion.
Update for Ferrari results - 13.42pm