It’s always been a trope that buying a fast car in your 40s or 50s was a sign of midlife angst, if not a full-blown crisis; but that rather old-fashioned view is under threat as more and more younger people buy Ferrari (RACE) cars.
Speaking to CNBC on the sidelines of CONVERGE LIVE in Singapore, Ferrari CEO Benedetto Vigna said 40% of its customers are now under the age of 40. That’s up from about 30% almost two years ago. “40% of the new clients are below 40 years,” Vigna told CNBC. “I don’t know for other brands, but for us, it is an achievement that is thanks to our team.”
Younger ages may be associated with sales growth new markets, with buyers in China reportedly about 10 years younger than they are in Europe on average. According to a Forbes report from 2011, buyers of the famous Cavallino Rampante (prancing horse) were, on average, aged 32 in China against an average age of 47 in North America.
The trend towards a more youthful ownership is noteworthy since Ferrari remains so exclusive – always producing one car fewer than the market demands, as Enzo Ferrari once said. Waiting lists are up to three years, production is rising just but closely controlled at just +0.7% last year, and three-quarters of those who buy the cars are already Ferrari customers.
Tariffs and EVs
The remarks come ahead of Ferrari’s much anticipated launch of its first full-electric vehicle, the Ferrari Elettrica, one of six new models slated to roll off the Maranello factory lines this year. Ferrari reported a 21% jump in net profits last year and forecast core earnings to rise by 5% this year, though tariffs could affect these forecasts.
Speaking in Singapore a few days ago, Vigna noted that tariffs could be a problem this year, but the company is in “scenario planning phase” and is waiting for the official announcement on the tariff rate.
Over the weekend President Donald Trump insisted that reciprocal and sectoral tariffs will be imposed on U.S .trading partners on April 2nd, and that he has no plans for exemptions on steel and aluminum tariffs.
Is RACE a Good Stock to Buy?
On TipRanks, RACE has a Moderate Buy consensus based on eight Buys, seven Holds and one Sell rating. The average RACE price target of $512.11 implies 14% upside.
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