Key Takeaways
- Ferrari’s inaugural electric vehicle, the Luce, drew mixed reactions due to its unconventional design.
- The brand’s core strategy of limited production and premium pricing continues to underpin its market strength.
- With a current price‑to‑earnings ratio of 33.1—near a five‑year low—long‑term investors might find the stock attractive.
In October of last year, Ferrari (NYSE: RACE) published its decade‑long financial outlook, projecting 5% annual revenue growth from 2025 to 2030. The market reaction was swift, sending the shares down 21% in a matter of days, and the stock has exhibited volatile trading in subsequent months.
Ferrari’s share price fell below $400 in November and has remained there. While some question the timing for a long‑term investment, the company’s fundamentals suggest stability.
Image source: The Motley Fool.
Luce: A Bold Expansion into Electric Vehicles
Designed by LoveFrom, a consultancy spearheaded by former Apple chief design officer Jony Ive, the Luce diverges from Ferrari’s traditional aesthetic. It delivers 1,035 horsepower and can accelerate from 0 to 62 mph in just 2.5 seconds. Pricing starts at approximately $640,000, staying true to the brand’s high‑margin, low‑volume model.
The Luce offers four doors, five seats, and a substantial trunk, potentially broadening Ferrari’s customer base beyond the typical racing enthusiast. Even if the model underperforms, it is unlikely to erode the company’s solid financial footing.
Ferrari’s core values—exclusivity, luxury, and performance—remain unchanged, underpinning its continued pricing power and resilience in economic downturns.
Valuation Overview
Over the past decade, Ferrari’s stock has surged 691% (as of June 3). It currently trades roughly 33% below its July 2025 peak, offering a potentially attractive entry point for long‑term investors. The company registered a first‑quarter 2026 operating margin of 29.7%, a benchmark rare in the automotive sector.
The limited‑supply model keeps demand perpetually high, further stabilizing earnings. With a P/E ratio close to a five‑year low, new investors may find the present valuation appealing.
Is Now the Right Time to Buy Ferrari?
Potential investors should weigh Ferrari’s historical performance and current valuation against their portfolio goals. While the Motley Fool Stock Advisor team recently highlighted other growth stocks, Ferrari’s robust fundamentals and brand longevity remain compelling for long‑term equity strategies.
*Stock Advisor returns as of June 6, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Ferrari. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
