Core Insights - Ferrari's growth strategy focuses on selling fewer cars at higher margins, emphasizing emotional connections and exclusivity rather than volume [1][4] - The company operates more like a luxury brand, akin to Hermès, with a business model engineered for scarcity and customization [3][5] Financial Performance - In 2024, Ferrari delivered 13,752 cars, generating €6.677 billion in revenue, with a sales volume increase of only 89 cars but a revenue increase of €707 million [4] - Ferrari's gross margin reached approximately 50% in 2024, significantly higher than traditional automakers like General Motors [5] Business Model - Ferrari maintains a production cap to ensure rarity, which drives demand and strengthens resale values, following the founder's principle of producing "one car less than the market demands" [6] - The brand's unique positioning allows for price increases without diminishing demand, as luxury economics dictate that higher prices can enhance desirability [7] Brand and Market Position - Ferrari's brand is characterized by its ability to create pre-sold demand through long waiting lists, providing a buffer against economic downturns [7] - The company operates more like a perpetual franchise, with its intellectual property and craftsmanship serving as intangible assets that appreciate over time [8] Strategic Implications - Ferrari exemplifies how scarcity can be an effective growth strategy, focusing on emotional engagement rather than operational efficiency [9]