Posted on 12/29/2022 8:19:02 AM PST by Red Badger
While electric vehicle (EV) startups that once seemed promising saw their stock prices plummet far faster than the rest of the market, Ferrari managed to stay ahead of other automakers as the industry retracted, and is poised to post the smallest decline amongst major automakers in 2022, CNBC reported Wednesday.
The FactSet Automotive Index, a measure of the economic health of the auto industry, is down nearly 39% year-to-date at time of writing, whereas Ferrari’s stock is only down about 19% trading at roughly $210 per share, according to Google Finance. With just a few days left in the year, Ferrari was well ahead of traditional automakers such as General Motors and Ford, who were each down more than 45% this year, and left EV-focused startups in the dust, according to CNBC.
EV startups Rivian, Lucid and Canoo all posted losses of more than 80% year-to-date, while competitor Nikola saw shares fall nearly 78%, according to Google Finance. Other mainstream brands, such as Dodge-maker Stellantis, and Toyota saw declines of nearly 30% year-to-date, weathering 2022 without the production and liquidity issues that startups struggled with this year, according to CNBC. (RELATED: Automakers Could Be Forced To Cut Prices — And Profits — In 2023)
Tesla, perhaps the most high-profile EV maker in the U.S., is down roughly 70% year-to-date, losing nearly 20% in the week ending Dec. 23 after CEO Elon Musk spooked investors by selling around $3.5 billion worth of shares. While some investors are concerned that Musk is spending too much time managing Twitter, the social media platform he acquired in October, Musk blames heightened interest rates set by the Federal Reserve to combat inflation for weakening the stock market.
Elevated interest rates have also made car loans more expensive, helping push demand for new vehicles down as 2023 approaches, S&P Global Mobility reported. To spur demand, companies may be forced to cut prices, hurting profits and further damaging their value in the eyes of shareholders.
Ferrari, meanwhile, expects demand will continue to be strong, including for its first-ever SUV, the Purosangue, which will be launched next year, CNBC reported. Although the car starts at $400,000 in the U.S. — well above Ferrari’s average selling price of $322,000 — the company was forced to pause new orders after it received orders for two years’ worth of production.
“[Ferrari’s] focus on the unique quality and performance of its vehicles is unwavering, and has driven a track record of resilient financial performance, as well as significant intangible brand value and a true luxury status,” wrote John Murphy, a Bank of America securities analyst in a Dec. 13 note to investors, according to CNBC. Murphy recommended that investors buy Ferrari, estimating that the stock would be fairly valued at $285 per share.
Ferrari is set to produce its first EV in 2025, and anticipates 40% of its cars will be fully electric by 2030, while 80% will be electrified in some capacity by the same time, according to Forbes. Despite this, Ferrari still intends to improve upon its combustion engine models.
“I believe that the internal combustion engine has a lot to give,” CEO Bendetto Vigna told investors in June, Forbes reported.
Ferrari did not immediately respond to a Daily Caller News Foundation request for comment.
Battery EV’s will suck forever. You can’t store electricity efficiently enough, it needs to be generated.
How many horror stories have you read about un-rechargable cars during the last storm. Just when you need your car the most.
Ferrari! Who would have guessed that a company with an average vehicle price of $220,000 would be the big winner in such a down market?
What is the % of Ferraris, and other super high end cars that NEVER touch the road?
Or, after many years have less than 1000 miles on them? But have still had their $10k oil change every year, just in case?
Those cars are in a different league. They are functional. But more collectors items and art than daily drivers.
To compare a Ferrari to a Geo metro or a Fiat 500, is just not a reasonable thing to do.
What about getting their electricity from the road , Oh wait that was a FAIL ,LOL
Just about any ICE is far more practical than an EV. Why else have they been used exclusively for over 120 years.
EV’s are just being used in an attempt to keep people from travelling and destroy the ICE. There is no infrastructure to support EV’s and what little there is is heavily centralized and poised to be shut down at a moments notice.
There were attempts on EV at the dawn of car revolution. Among others, Edison spend a big portion of his fortune on wain attempts to build competitive EV.
They’ve made “progress”. For the more “normal” Ferraris, that yearly oil change is down to “only” $1500. And they’ve started using timing CHAINS instead of belts. It was the “engine out timing belt services” that were $10,000, and had to be done yearly on the V-12 models.
There's a saying that the British autos have great mechanicals but bad styling, the Italians sexy stylings but bad mechanicals but the Germans got both...
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