🏎️ Why Ferrari's stock is closer to LVMH than to Tesla
Many believe that Ferrari is just a car company.
But in reality, Ferrari operates like a luxury brand.
Car manufacturers aim to sell as many cars as possible.
Ferrari does the opposite.
The brand intentionally limits its production to maintain rarity and exclusivity.
Some Ferraris have multiple years of waiting lists.
Result:
more desire
more prestige
more margins.
Ferrari sometimes makes over €100,000 in profit on a single car.
And customers don't ask:
"Is it the cheapest?"
They ask:
"Can I get one?"
This is exactly the logic of luxury.
That's why Ferrari's stock is often compared to LVMH rather than Tesla.
Moral of the story:
In the stock market, the best companies don't just sell products.
They sell a status.