Most of us likely believe we will never actually come in contact with a Ferrari (RACE) car, but the legacy automaker still brings them out. Its latest model, a “hypercar” known simply as the F80, is already turning heads, and investors are getting in, sending shares up over 2% in Thursday afternoon’s trading.
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The F80 will draw heavily on racing car technology, which should only be a modest surprise at best, as that has been a major part of the Ferrari name for decades. Reports note that it is the first hybrid car Ferrari has rolled out in the United States in 11 years, and with three electric motors generating a combined horsepower of around 1,200, it has a top speed of 220 miles per hour.
For those who want in on this bad enough, one can be had for a downright terrifying price of $3.9 million. The move is not so much a first in its class, though, as McLaren was recently spotted rolling out a high-end hybrid car of its own just a few weeks ago.
Highly-Personalized Used Ferraris
For those who think that dropping $3.9 million on a single car is a terrible idea rather than a life goal, they will be happy to know that there is a fairly substantial market for used Ferraris. However, there is one major issue around these cars: excessive personalization.
Not surprisingly, those who spend multiple millions of dollars on a single vehicle want to be able to personalize these, and to a substantial degree. For instance, just 30 or 40 years ago, most new Ferraris were red. This was fairly standard, and most knew that a used Ferrari would be red, so it was good enough. But today, red Ferraris are merely 40% of the market, and that means that Ferraris in various hues and shades of white or green are in play.
It’s worth noting that Ferrari makes around a fifth of its revenue on personal touches, but the used market downstream is starting to suffer from personal touches that prove a bit too personal.
Is It Good to Invest in Ferrari?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RACE stock based on eight Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 60% rally in its share price over the past year, the average RACE price target of $476.60 per share implies 1.12% downside risk.
