The Secret of Ferrari? Sell Less to Make More

The months go by and look the same for Ferrari with staggering financial results. Luxury automobiles are a world apart.

Ferrari announced its financial results for the third quarter of 2024 with a turnover of €1.64 billion, up 7% compared to the same period last year. An astonishing figure when you consider that during this period, the Italian brand sold only 3,380 cars! Nearly €2 billion in revenue with fewer than 4,000 sales—welcome to the wonderful world of exceptional automobiles where the entry ticket starts at €200,000, and where a million is just another unit of value.

Sales, however, fell by 2% during this period, but new models are driving revenues higher. Very exclusive, the margin per vehicle allows Ferrari to achieve completely out-of-this-world financial results. This is the result of a strategy that prioritizes quality over quantity. But to sell at a high price, you must offer a product with an aura that justifies all excesses. And to maintain this image, Ferrari can rely on a lethal weapon: Formula 1.

The revenue of the sports division reached €192 million in the third quarter of 2024, a nearly 20% increase compared to last year. This figure includes F1 and endurance racing, in which Ferrari shines by having won the last two editions of the 24 Hours of Le Mans. Racing is expensive—and very costly for Ferrari—but each victory translates into brand image and sales of merchandise. Just look at the number of red caps and T-shirts on race tracks around the world every weekend, and you’ll understand that this last item is anything but insignificant. And the arrival of Lewis Hamilton in the Scuderia in 2025 should allow the Prancing Horse brand to break new records.

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