Name of opportunity: 👀
Ferrari NV
Electricity: 🔌
The brand has announced its first electric car, which will be launching in the fourth quarter of next year. Ferrari say they are developing a ‘sound signature’ for the electric vehicle - while EVs are usually silent, the company knows that the roar of the engine is part of the appeal of its luxury cars. And this electric car certainly will be luxurious, with a likely price tag of around US$537,000.
How hot is this investment opportunity? 🔥🔥🔥
Ferrari is a brand with a long history of healthy financial performance. The high end car manufacturer has reported steady growth in the last few years, with a dip in 2020 at the start of the COVID pandemic. From 2022 to 2023 its gross profit on sales change was 21.58%, higher than the previous year's change of 11.69%. Ferrari’s core earnings grew by 13% from January to March this year. If this pattern of growth continues, shareholders will stand to benefit.
On the other hand, the cost of Ferrari share prices are comparatively high, at $410.70, and analysts overall do not see much upside potential - they do not think it will go much higher.
Even if the electric cars do not cause much of a spike in sales, there are still plenty of other ways that Ferrari is enticing customers to spend. 19% of the brand’s profit came from personalisation last year, with customers going all in on the luxury experience.
Pedal to the metal: 🏎️
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars. The company is active in over 60 markets worldwide through a network of authorised dealers. Its cars are produced in limited numbers to maintain exclusivity - and if you wanted to snap up certain models, the waiting list can be as long as 2 years. As well as sports cars, Ferrari produces race cars, which compete in Formula One races.
Which neme?: 🔍
‘Invest In Luxury’, ‘Automotive’
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