Core Insights - Ferrari's luxury supercars are in high demand and highly profitable, with a stock increase of 578% over the past decade despite a recent dip following lower-than-expected 2030 guidance [1][11] Production and Exclusivity - Ferrari has increased production by 88% over the past 10 years while maintaining exclusivity, producing about 1,000 vehicles per model annually [3] - The limited availability of each model helps sustain high demand and allows for premium pricing [4] Product Mix and Innovation - The company has successfully developed hybrid vehicles, which accounted for 51% of sales in 2024, and will begin deliveries of its first electric vehicle next year [4][5] - Ferrari is navigating the challenges of the automotive market well by offering a mix of gasoline-powered supercars, hybrids, and soon, battery-powered sports cars [6] Financial Performance - Ferrari's operating margin is approximately 29%, significantly higher than many competitors in the industry [7] - Management projects that the operating margin will remain "at least 30%" by 2030 due to product mix, limited-edition models, and vehicle personalizations [9] - Earnings per share for the first half of the year were 4.68 euros ($5.42), reflecting a more than 10% increase from the previous year [10] Market Position - Despite a recent share price drop, Ferrari's stock has more than doubled over the past five years, outperforming the S&P 500's 86% gain [11] - The company is expected to continue driving demand while maintaining high operating margins, suggesting potential for long-term stock performance [11]