From Yahoo Finance: 2025-05-08 07:46:00

Luxury automakers like Ferrari may be shielded from tariff-related price increases due to their ultra-high-net-worth clientele. Ferrari’s pricing strategy includes raising prices on ultra-premium cars by up to 10%, while holding prices steady on lower-priced models to remain competitive. The company’s CEO notes positive client feedback on the strategy.

Ferrari reports that profit metrics like EBIT and EBITDA margins could see a potential 50 basis point hit due to tariffs on foreign auto imports. The company aims to mitigate this impact by strategically adjusting pricing on its high-end and lower-priced models. The CEO emphasizes transparency and customer contribution in the pricing strategy.

Lamborghini also sees strong results in the first quarter, with revenue up 30% and 33% growth in EBIT compared to the previous year. The company remains vigilant amid trade uncertainties and maintains a robust order book. Lamborghini’s key commercial regions help spread the risk of trade tensions.

Wall Street analysts support Ferrari’s strategy, citing its defensive business model, low exposure to China, and strong pricing power. The company’s order book extends into 2026, providing relative safety in an uncertain economic environment. Ferrari’s focus on high-net-worth consumers and strategic regional exposure contribute to its success.

Ferrari’s CFO expresses confidence in the company’s business model during the earnings call, highlighting agility and resilience in the face of economic uncertainty. With a low dependency on China, high pricing power, and a defensive business approach, Ferrari aims to navigate challenges and maintain stability in the luxury automotive market. 1. The stock market surged today, with the S&P 500 hitting a new record high. Tech stocks led the way, with Apple, Amazon, and Microsoft all seeing significant gains. Analysts attribute the rally to positive economic data and hopes for a swift recovery from the pandemic.

2. In international news, tensions are escalating between Russia and Ukraine as Russian troops continue to mass along the border. The United States and European Union have expressed concern over the situation, calling for a de-escalation of hostilities.

3. COVID-19 cases are on the rise in several states, prompting renewed calls for mask mandates and social distancing measures. Health officials are urging the public to remain vigilant and get vaccinated to help curb the spread of the virus.

4. In entertainment news, Netflix announced a new collaboration with acclaimed director Steven Spielberg. The streaming giant will produce multiple films under Spielberg’s Amblin Partners banner, marking a significant shift in the industry’s landscape.

5. The latest data from the Labor Department shows that jobless claims have fallen to their lowest level since the beginning of the pandemic. This is seen as a positive sign for the economy as businesses continue to reopen and hire new employees.

Read more: Ferrari’s luxury game plan takes on Trump’s auto tariffs