Ferrari’s (NYSE:RACE) CEO Talks About the Future

Ferrari’s (NYSE:RACE) CEO Talks About the Future

$RACE

Ferrari (NYSE:RACE) has stabilized over a year after the death of Sergio Marchionne. And Louis Camilleri who took over as CEO of Ferrari in July 2018 following the death of Sergio Marchionne has a somewhat softer touch.

Ferrari stock has soared in the time since, and its future as a luxury brand is tightly focused.

Camilleri, a veteran of Philip Morris, has not been speaking to the press, but he spoke to The Wall Street Journal last week, comparing Ferrari to the tobacco giant because it was “managing a company which is part of an industry going through major transformation and how to keep ahead of that transformation.”

That analogy is on the target, and here is more from the WS-J: Electric cars have fewer moving parts than a vehicle with an internal combustion engine, potentially making it harder for Ferrari to showcase its engineering prowess, which has produced cars that can accelerate from 0 to 60 miles an hour in 2.4 secs and can hit top speeds above 200 mph.

The perception is that the battery is a leveler; it’s up to us to be sure we can differentiate,” Mr. Camilleri said.

Ferrari has begun to dabble in hybrids—this year it released its 1st series production plug-in hybrid, the SF90 Stradale and has set a target to have three of every 5 new Ferraris be hybrids by 2022.

Mr. Camilleri said the 1st fully electric Ferrari should arrive between Y 2025 and 2030, with the precise date depending on the speed of technological advances.

Ferrari also wants to become more competitive in F1, where it has for decades tested technology that eventually makes it into its production cars. 

Mr. Camilleri said that it was hoping to do that through stability, taking the smallest of swipes at Marchionne, who was famous for berating employees in public.

Ferrari this season once again came up short against rival MercedesAMG, but the team won 3 races in a row for the 1st time since Y 2008, an improvement Mr. Camilleri linked to better moods.

“Mercedes has had a lot of stability, and we’ve had something of a revolving door,” Mr. Camilleri said. “People were afraid of taking risks because if they made a mistake they could get their head chopped off,” he said.

Mr. Camilleri told the WS-J that Ferrari would tighten its focus on Ferrari-branded merch with its new tie-up with iconic fashion designer Giorgio Armani, which is a fraction of its business now but could be 105 of its profits within a decade

Ferrari is the Aristocrat of the automotive sector.

Enzo Ferrari’s iconic Italian Supercar manufacturer claimed the title according to the latest Brand Finance Global 500 2019 report launched at the World Economic Forum in Davos.

HeffX-LTN overall technical outlook for RACE is Very Bullish, overhead resistance is NIL and Key support at 165.00, as all Key indicators turned Very Bullish and the stock has established long term support ahead of this breakout.

Ferrari finished at 165.25, -0.16 Friday in NY.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I see it at 200+/share in that frame.

Ferrari will continue to create value in the long term. Ferrari is a quality 1st long term luxury products investment, and I see it at 200+/share in that frame.

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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