Ferrari (NYSE:RACE) Vs the Rise of EVs and Autonomous Driving
$RACE, $VLKAY, $TSLA
Ferrari (NYSE:RACE) investors should not be concerned about Electric Vehicles and Autonomous Driving
Note: Automotive analysts are predicting that the rise of electric vehicles and autonomous driving will materially reshape the future of the automotive industry, with companies fighting to ensure they remain relevant. And although it appears Ferrari may be poorly positioned due to its relatively small size, this is not the case, it is just the opposite. When discussing Ferrari in comparison to a traditional automotive manufacturer it is important to consider the different desires of their customers.
The rise of electric vehicles and autonomous driving has created changing times for the automotive industry as the major manufacturers move to ensure they remain relevant in this automotive new age.
Recently there have been discussions among automotive analysts regarding Ferrari’s ability to adapt to these changing times.
Some people say that Ferrari is threatened to a greater extent than traditional manufacturers. Others disagree because Supercar manufacturers like Ferrari are better positioned than the larger traditional automobile manufacturers.
It may seem quaint because Ferrari is a very small company when compared to the traditional car manufacturers. And there is a Key difference, that being their customers’ likes and wants.
Even though Ferrari and Volkswagen are both manufacture cars, their buyers seeking very different attributes for vastly different reasons. Although many of Ferrari’s clienti may also be Volkswagen or BMW customers, when shopping for their next Supercar they are looking for a completely different set of attributes, except where is concerns VW’s Supercars like Lamborghini or Bugatti or BMW’s luxury and limited editions supercars, and even Tesla’s offerings.
When looking at Volkswagen, it primary customers are shopping for a car to commute to work, take their children to school and the other routine driving, whereas a Ferrari clienti is shopping for the iconic prestige and driving experience .
Volkswagen’s customers seek comfort, safety, reliability, fuel efficiency and other modern features, Ferrari’s clienti want a large engine with big sounds, super and Hypersuper performance, sexy looks and livery.
Overall with over 50 years of owning and driving Ferrari’s I am keenly aware that the Maranello outfit’s clienti are not interested in a ‘Prancing Horses’ practicability, not being practical is part of the allure.
|NYSE:RACE||104.66||7 December 2018||-2.87||108.31||109.18||104.66||227,938|
|HeffX-LTN Analysis for RACE:||Overall||Short||Intermediate||Long|
|Bearish (-0.48)||Bearish (-0.46)||Bearish (-0.47)||Very Bearish (-0.50)|
Have a terrific weekend