Core Insights - Ferrari has evolved from a traditional automaker to a luxury brand with a highly profitable business model, attracting investor interest due to its financial performance [1] Company Overview - Ferrari designs, engineers, manufactures, and sells ultra-premium sports cars, along with personalized features, after-sales services, and lifestyle goods. In 2024, Ferrari shipped 13,752 vehicles, generating revenue of 6,677 million euros, an increase of 11.8% from the previous year, averaging just under half a million euros per car [2] Business Model - Ferrari intentionally limits production to maintain high demand and pricing power, producing "one car less than the market demands," similar to luxury brands like Hermès and LVMH [3] - The company boasts adjusted EBITDA margins around 38%, significantly higher than competitors like Tesla, which had a margin of 17% in 2024, highlighting Ferrari's superior profitability [4] Revenue Streams - Approximately 15% of Ferrari's revenue comes from non-automotive businesses, including sponsorship, brand licensing, and financial services, while the majority is derived from vehicle sales and related operations [5] Future Outlook - Ferrari faces the challenge of transitioning to electrification while preserving the emotional appeal of its cars. The company is currently modernizing its fleet, with half of its shipments being hybrid and plans for its first fully electric model in 2026, expecting 60% of sales to be hybrid or electric by that year [6][8]