$RACE Ferrari N.V. Deep Dive and 2024 Outlook

The automaker is one of the few consistent performers in the sector

Ferrari N.V., founded in 1939 by Enzo Ferrari, is a leading manufacturer of luxury performance sports cars, renowned for its commitment to exclusivity, innovation, and high-performance engineering. The company offers a diverse product portfolio that includes iconic models such as the Ferrari 296 GTB and the SF90 family, with a growing emphasis on hybrid technology to align with sustainability goals. They are driven by strong demand across global markets, particularly in the Americas and Asia.

Ferrari's technological advancements are evident in its investment in research and development, which focuses on electric propulsion systems and lightweight materials. Its customer base primarily consists of high-net-worth individuals (HNWIs), and it strategically focuses on maintaining scarcity to enhance desirability and value.

Operating in a competitive market alongside brands like Porsche and BMW, Ferrari's unique business model emphasizes high margins and limited production, ensuring demand consistently exceeds supply.

The big questions for Ferrari N.V. and the stock in 2024?

1. How will Ferrari navigate the transition to hybrid and electric vehicles?

2. What impact will global economic conditions have on luxury car sales?

3. Can Ferrari sustain its growth trajectory amid rising competition?

4. How will recent partnerships and technological advancements affect profitability?

5. What are the implications of Ferrari's high valuation metrics?