Ferrari's car sales have taken a slight dip—not by much, but enough for the market to respond sharply, sending the stock into a decline.
The stock's downward trajectory follows reports of reduced sales numbers and a notable drop in demand in the Chinese market.
In the third quarter, Ferrari saw a 2% drop in the number of cars sold globally, while sales in China plummeted by 29%. This downturn has pressured the stock, leading to a drop of over 7%.
Historically, Ferrari has maintained steady sales growth, largely unaffected by economic fluctuations, but recent numbers suggest that even the luxury automaker is starting to feel the effects of changing market conditions.
For years, Ferrari has enjoyed a consistent increase in car sales and a loyal customer base, yet this quarter points to a different trend
Despite the decline in sales volume, Ferrari has managed to increase both revenue and profit, thanks to an expanded model range and higher-priced vehicles.
In the third quarter, revenue rose by 6.5%, reaching approximately $1.73 billion, while profit came in at around $677 million—an increase of 7%.
This growth is partly attributed to a surge in customers opting for Ferrari's Tailor Made program, which allows for exclusive customizations, adding to the brand's luxury appeal.
Demand for High-End Models
Despite the dip in overall sales, Ferrari is not in any immediate trouble, as demand is still strong for its newest and priciest models.
Recent releases, including the F80, 12Cilindri, and SF90 XX, have generated waiting lists and sustained customer interest, according to analysts. This demand is expected to positively impact sales in the next quarter.
“The decline in volume does not reflect a demand shortfall, but rather shows Ferrari's ability to allocate its supplies to match its margin ambitions,” noted Bernstein analysts, according to Reuters.
