Ferrari N.V.
Ferrari N.V., through its subsidiaries, engages in design, engineering, production, and sale of luxury performance sports cars worldwide. It offers sports, track, one-off, and road cars, as well as supercars. The company also provides spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars; and licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods. In addition, it operates Ferrari museums in Modena and Maranello; Il Cavallino restaurant in Maranello; and theme parks in Abu Dhabi and Spain. Further, the company provides direct or indirect finance and leasing services; range of financial and ancillary services; special financing arrangements; and operates franchised and owned Ferrari stores. The company was founded in 1947 and is headquartered in Maranello, Italy.
What does it do?
Ferrari makes some of the most famous and expensive cars in the world — think the bright red sports cars you see in movies or driven by celebrities. Each car costs anywhere from $250,000 to well over $3 million, and they're built in tiny numbers on purpose. Beyond cars, Ferrari also licenses its iconic prancing horse logo to luxury clothing, watches, and accessories. They even run two museums in Italy that attract hundreds of thousands of visitors every year.
Ferrari is one of the few car companies that actually behaves like a luxury goods brand — more like Hermès than Ford — which means it can raise prices and grow profits even when the economy slows down. Investors care right now because Ferrari is navigating a careful transition toward electric and hybrid vehicles without diluting the brand that makes it special. With a $64 billion market cap, the market is pricing Ferrari as a luxury empire, not just a car manufacturer.
How does it make money?
Ferrari makes most of its $7.1 billion in revenue by selling a deliberately small number of cars — around 13,000 to 14,000 per year — at extremely high prices. The company also earns meaningful income from spare parts, servicing, and restoring older Ferraris, which is a recurring and loyal revenue stream. On top of that, licensing deals let brands pay Ferrari to put its logo on everything from caps to perfume. Revenue grew from $6.7 billion to $7.1 billion in the latest year, roughly a 6% increase, driven largely by price increases and a richer mix of higher-end models.
Why do investors care?
The core investor appeal is Ferrari's ability to grow revenue and profit simply by charging more — it has a waitlist for most models, so demand reliably exceeds supply. Ferrari is also rolling out hybrid and fully electric models that could attract a new generation of wealthy buyers without alienating existing ones. Net income hit $1.6 billion on $7.1 billion of revenue, meaning Ferrari keeps about 22 cents of profit for every dollar it earns — that's exceptional for any manufacturer. For the thesis to work, Ferrari needs to electrify its lineup successfully while keeping the brand's mystique completely intact.
Deep Dive
MemberA full investor briefing on Ferrari N.V. — history, leadership, risks, and outlook.