Ferrari N.V. (RACE) Stock Analysis & Winston Score

Ferrari makes luxury sports cars and racing cars. The company sells vehicles under the Ferrari brand to wealthy buyers around the world, and it also competes in Formula 1 racing. Ferrari is one of the most recognized luxury brands on the planet, and it deliberately limits how many cars it produces each year to keep demand higher than supply. Ferrari makes money mainly by selling cars, but it also earns revenue from its Formula 1 racing team, licensing its brand to merchandise and theme parks, and selling spare parts and personalization options. The company operates globally, with strong sales in Europe, the Americas, and Asia-Pacific, and generates around €5–6 billion in annual revenue. Its main competitive advantage is its brand exclusivity — long waiting lists and strict production limits protect its pricing power. The key risk is that Ferrari's ultra-wealthy customer base could shrink if global economic conditions worsen significantly, or if the shift to electric vehicles forces costly changes to its product lineup.