Ferrari’s Abrupt U-Turn!
Ferrari is in overdrive! Five new luxury cars have been unveiled this year, and today, a sixth comes out called ‘The Roma!’ It’s got plenty of talk, it’s hot in demand, and if your stick to your investments, then maybe one day it’ll be sitting in your driveway!
The Ferrari brand is up there with the very best, holding a uniquely mythical place in the minds of both 8-year-olds and 52-year-olds. The brand might even be too powerful! Much like how the Ferrari Tifosi purr over and polish their supercars at the same time as being too afraid to drive them, the investor-base of Ferrari has a similar issue with its renowned brand. Bearish investors are worried that making the most of pricing power will take the shine off the ‘Prancing Horse,’ but other investors just don’t get that!
At long last, a gutsy strategy has indeed been agreed. The automaker’s factory in Marinello will pump out more grand tourers (GTs) than fire-spitting racers from now on, in a bid clientele can get used to carefree, pleasurable comfort on Italian road trips.
The promising profit margins on GT cars are supposed to help Ferrari “double core earnings without sacrificing exclusivity.” The firm only ships around 10,000 cars per year, but 40% of those could be tourers before 2022 if all goes to plan! The prices are going up, the wall posters are going up, but is the stock price going up?