This year has been tough for car companies because there were a lot of problems that made it hard to sell cars. Some of these problems included:
- A bubble bursting for companies that make electric cars
- Not having enough cars in stock
- Interest rates going up (interest rates are like the cost of borrowing money)
- Fears that the economy might not do well
- People not wanting to buy as many cars
All of these problems made it difficult for car companies to make money, and as a result, their stocks (a stock is like a share of a company that you can buy) did not do well. Some of the biggest car companies saw their stocks go down a lot this year. This includes companies that make traditional cars and companies that make electric cars. Even though some car companies made a lot of money this year, it wasn’t enough to make up for all of the problems they faced. Some people think that next year might be tough for car companies too.
Ferrari wins by losing the least
Ferrari is a company that makes really expensive sports cars. This year, its stock (a stock is like a share of a company that you can buy) went down by about 18%. This is less than other car companies.
Ferrari only sells about 13,000 cars each year, but they are very expensive and people are willing to pay a lot for them. The average price for a Ferrari is around $322,000.
Even though they don’t sell very many cars, Ferrari makes a lot of money because they are so expensive. Ferrari also limits how many cars it makes each year so that it can keep prices high and its cars will be special. This helps Ferrari have very high profit margins (profit is the money a company makes after paying all of its expenses).
Because Ferrari is so successful, its factory (a place where they make the cars) is not likely to close anytime soon.
Ferrari is a company that makes very expensive sports cars.
The CEO of Ferrari, Benedetto Vigna, said that most of the company’s models were sold out for the year by early November.
Vigna thinks that there will be no problem with demand for Ferrari’s cars in 2023, no matter what happens with the economy.
This is because Ferrari has new models coming out soon, including its first vehicle that is like a sports utility vehicle (SUV). This vehicle is called the Purosangue and it has a powerful engine and four doors. It costs about $400,000 in the United States.
Even though it is very expensive, there are a lot of people who want to buy it. Ferrari stopped taking orders for the Purosangue last month because it had already sold out the first two years of production.
A lot of people think that Ferrari’s focus on making high-quality and high-performance vehicles has helped the company do well financially and made its brand very valuable. Some analysts recommend buying stock in Ferrari and think that it will be worth around $285 in the future.
The Tesla story
Tesla is a company that makes electric cars. Its stock (a stock is like a share of a company that you can buy) has gone down a lot this year. In fact, it is down more than 68% since the beginning of the year.
A lot of this decline happened after the CEO of Tesla, Elon Musk, bought a social media platform called Twitter. Tesla’s stock is down more than 50% since the deal happened on October 27.
Some people think that this could be a problem for Tesla in the future and that it could hurt the company’s financial performance.
Other car companies have also had a tough year.
Ferrari’s stock is down 18%
Stellantis’ stock is down 25%
Toyota’s stock is down 26%
Nissan’s stock is down 35%
General Motors’ stock is down 43%
Volkswagen’s stock is down 46%
Ford’s stock is down 46%
Fisker’s stock is down 57%
Nio’s stock is down 68%
Lordstown’s stock is down 69%
Nikola’s stock is down 75%
Rivian’s stock is down 82%
Lucid’s stock is down 83%
Canoo’s stock is down 86%
Some analysts think that next year could be difficult for car stocks as well.
