Ferrari (NYSE:RACE) Garners the Top Margins in the World’s Automotive Sector

Ferrari (NYSE:RACE) Garners the Top Margins in the World’s Automotive Sector

Ferrari (NYSE:RACE) Garners the Top Margins in the World’s Automotive Sector


Ferrari (NYSE:RACE) holds the Top position in the world’s automotive sector even though it is a boutique maker of exclusive, luxury Supercars and HyperSuper cars.

As such the Maranello Outfit leads the industry in a Key financial metric, that is operating profit per unit sold.

According to a German study translated and reported Wednesday, the iconic Italian luxury specialty automaker marks at least $80,000 for every vehicle it sells, by far the highest in the automotive industry.

By contrast the report declares, Jaguar Land Rover makes just $927 per car sold.

For more perspective

The German study goes on to reveal that every Porsche sold brings in at least $19,715 for the company, that is almost 2X the margin of Mercedes-Benz, Audi, and BMW which all boast around $10,500 of profit per vehicle.

Maserati, the luxury unit of Fiat-Chrysler (NYSE:FCAU) marks with a tidy $5,800 for every car sold.

On the other side of the automotive spectrum

Volkswagen (OTCMKT:VLKAY) owned super-luxury automaker Bentley Motors is losing $19,715 every time a customer buys one of its cars. The company blames this on its heavy financial investment in electrification.

Tesla (NASDAQ:TSLA) rather infamously loses at least $12,757 for every EV (electric car) it sells, and that not include the US taxpayer subsidies it taps.

It is widely know by thosesof us that follow Ferrari that the company aims to 2X its earnings by the year Y 2022 mainly by introducing an FUV, aka SUV currently codenamed F16X.

For the automobile purists, a hybrid Supercar would likely make Ferrari’s accountants joyful considering VW’s Lamborghini has reported some success with its recently launched Urus with sales apparently coming in better than expected.

Though it make me wonder how much money VW is losing on each 1 of them, humm

Symbol Last Trade Date Change Open High Low Volume
NYSE:RACE 125.84 8 August 2018 0.71 126.01 126.64 125.555 575,000
HeffX-LTN Analysis for RACE: Overall Short Intermediate Long
Bearish (-0.37) Bearish (-0.34) Bearish (-0.31) Bearish (-0.47)

Stay tuned…

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.