VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Wednesday, December 31, 2025
Ferrari N.V.
RACE · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
Ferrari (RACE) is a global luxury performance car maker and brand company whose revenue is dominated by Cars and spare parts, with additional monetization from sponsorship/commercial/brand activities (notably motorsport) and smaller ancillary revenues. The moat in the car business is primarily demand-driven: a prestige brand that supports premium pricing and strong personalization, reinforced by deliberate supply allocation (long waits) and a tightly managed authorized-dealer network. The installed vehicle base supports recurring after-sales and parts demand. Key pressures to monitor are brand dilution from volume/licensing decisions, execution risk in the EV transition, and cyclicality in luxury demand and sponsorship budgets.
Primary segment
Cars and spare parts
Market structure
Oligopoly
Market share
23% (reported)
HHI: —
Coverage
3 segments · 8 tags
Updated 2025-12-31
Segments
Cars and spare parts
Luxury performance cars and OEM spare parts/after-sales
Revenue
85.8%
Structure
Oligopoly
Pricing
strong
Share
23% (reported)
Peers
Sponsorship, commercial and brand
Luxury brand monetization via motorsport sponsorship, licensing, merchandising and branded experiences
Revenue
10%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Other
Ancillary activities tied to the Ferrari ecosystem (e.g., financial services linked to car sales and other activities)
Revenue
4.2%
Structure
Competitive
Pricing
weak
Share
—
Peers
—
Moat Claims
Cars and spare parts
Luxury performance cars and OEM spare parts/after-sales
FY2024 net revenues used for revenue_share: Cars & spare parts EUR 5,728m out of total net revenues EUR 6,677m (year ended 2024-12-31, reported in Annual Report/Form 20-F).
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Ferrari's luxury brand equity (status + perceived quality) supports willingness-to-pay and keeps demand resilient versus purely spec-driven competition.
Erosion risks
- Brand dilution from over-shipment or aggressive brand extension
- Quality/safety incidents or reliability perception issues
- Perceived innovation lag (e.g., EV/tech feature parity)
Leading indicators
- Average selling price (ASP) and product mix (special series, limited editions)
- Personalization rate and personalization revenue per car
- Residual value performance vs peers
Counterarguments
- Ultra-luxury buyers can substitute with other prestige marques and limited models
- Performance/feature parity (especially in EVs) can narrow perceived differentiation
Capacity Moat
Supply
Capacity Moat
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Intentional volume discipline and allocation keep supply below demand (long lead times), reinforcing exclusivity and supporting pricing.
Erosion risks
- Mis-calibration: shipments rise faster than demand growth
- Luxury demand shock compresses order book and delivery lead times
- Competitors expand limited-run capacity and capture collectors
Leading indicators
- Net orders and order book commentary (if disclosed)
- Reported shipments vs long-run targets
- Average delivery lead times reported by dealers/market checks
Counterarguments
- Scarcity is strategic, not structural-management could choose to raise volumes
- Competitors can also manufacture scarcity via limited series and allocations
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Selective authorized-dealer network helps control brand presentation, client experience, allocation discipline, and after-sales capture.
Erosion risks
- Dealer misconduct or poor service damaging client experience
- Channel model shifts toward direct sales expectations in luxury autos
- Regulatory changes affecting dealer relationships in some markets
Leading indicators
- Dealer network size and point-of-sale footprint
- Dealer concentration (top-dealer share of shipments)
- Customer satisfaction proxies and repeat-purchase rates
Counterarguments
- Dealers are independent and can multi-brand; control is contractual, not ownership
- For top clients, brand desire may dominate regardless of retail experience
Installed Base Consumables
Demand
Installed Base Consumables
Strength: 3/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Installed vehicle base drives recurring demand for OEM parts, service, and customization routed through the authorized network.
Erosion risks
- Independent repair/specialist parts alternatives
- Right-to-repair pressures expanding non-OEM access
- EV transition reducing service intensity for some components
Leading indicators
- After-sales and parts revenue growth rate
- Parts/service gross margin trend
- Active client base growth and fleet aging mix
Counterarguments
- High-end owners may use third-party specialists for maintenance and upgrades
- OEM capture rates vary by region and vehicle age
Sponsorship, commercial and brand
Luxury brand monetization via motorsport sponsorship, licensing, merchandising and branded experiences
FY2024 net revenues used for revenue_share: Sponsorship, commercial and brand EUR 670m out of total net revenues EUR 6,677m (year ended 2024-12-31, reported in Annual Report/Form 20-F).
Brand Trust
Demand
Brand Trust
Strength: 5/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Brand equity and racing heritage increase sponsorship/partner demand and support premium licensing and retail collaborations.
Erosion risks
- Motorsport underperformance reducing sponsor attractiveness
- Brand over-extension diluting luxury positioning
- Marketing budget cyclicality and sponsor concentration risk
Leading indicators
- Sponsorship and commercial revenue growth
- Team performance and visibility metrics (F1/WEC results)
- Licensing/royalty income trend
Counterarguments
- Sponsorship is performance- and cycle-sensitive; contracts can be renegotiated
- Luxury brands compete aggressively for consumer attention and partner shelf space
IP Choke Point
Legal
IP Choke Point
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Trademark portfolio and enforcement capability protect brand monetization and support premium positioning in licensed products.
Erosion risks
- Counterfeit and gray-market goods pressure brand perception
- Weak trademark enforcement in some jurisdictions
- Licensed product quality failures harming brand equity
Leading indicators
- Trademark dispute/enforcement activity
- Quality or recall incidents in licensed categories
- Partner roster and contract renewals
Counterarguments
- IP enforcement is imperfect globally and requires ongoing spend
- Luxury brand value still ultimately depends on consumer perception and product desirability
Other
Ancillary activities tied to the Ferrari ecosystem (e.g., financial services linked to car sales and other activities)
FY2024 net revenues used for revenue_share: Other EUR 279m out of total net revenues EUR 6,677m (year ended 2024-12-31, reported in Annual Report/Form 20-F).
Brand Trust
Demand
Brand Trust
Strength: 2/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Ancillary offerings benefit from Ferrari's brand halo and installed base, but advantages are generally weaker and more easily replicated than in the core car business.
Erosion risks
- Partner alternatives and commoditization of ancillary services
- Regulatory changes affecting financial services economics
- Mix shift reducing financed transactions or ancillary uptake
Leading indicators
- Stability/volatility of "Other" revenues over time
- Financial services penetration in key markets
- Partner program changes and renewals
Counterarguments
- These offerings can be imitated; differentiation mainly comes from the core brand
- Scale is small relative to the core business, limiting standalone moat impact
Evidence
aura of exclusivity
The filing links sustaining brand image (exclusivity) to preserving pricing and brand value-core demand-side advantage.
car waiting lists
Ferrari describes managing waiting times/volumes as part of preserving exclusivity, which underpins demand and pricing.
sell our cars exclusively
Ferrari states it sells through authorized dealers and manages the network quality/standards, supporting controlled distribution.
supply parts
The filing describes parts support for current/older models and customization demand, consistent with recurring after-sales economics.
market share of 23%
Ferrari discloses a 23% share for its historic reference market; interpretation should account for the company's market definition and geography/coverage caveats.
Showing 5 of 8 sources.
Risks & Indicators
Erosion risks
- Brand dilution from over-shipment or aggressive brand extension
- Quality/safety incidents or reliability perception issues
- Perceived innovation lag (e.g., EV/tech feature parity)
- Macroeconomic shocks reducing luxury discretionary spend
- Mis-calibration: shipments rise faster than demand growth
- Luxury demand shock compresses order book and delivery lead times
Leading indicators
- Average selling price (ASP) and product mix (special series, limited editions)
- Personalization rate and personalization revenue per car
- Residual value performance vs peers
- Discounting/incentive intensity in dealer channel
- Net orders and order book commentary (if disclosed)
- Reported shipments vs long-run targets
Curation & Accuracy
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