Since it was floated on the New York Stock Exchange in 2015, Ferrari has seen its shares rise from an opening price of $52 to $168.20 at the previous close. That’s because the company is making major efforts to please investors, including ramping up production and expanding into new, more mainstream segments. Yes, we’re talking about the Purosangue SUV due in 2021.
After years of limiting annual production to 7,000 units under the reign of long-serving Chairman Luca di Montezemolo, his successor Sergio Marchionne and now current Chairman John Elkann have opened up the taps. It means Ferrari is now selling more than 10,000 cars per year for the first time.
The Italian company on Tuesday announced sales for 2019 came in at 10,131 units, up 9.5 percent on the previous year. All those cars resulted in 4.1 billion euros (approximately $4.5 billion) in revenue and a profit of 917 million euros (EBIT).
But Ferrari won’t be slowing down at 10,000 units. The SUV could become one of the company's most popular models, and there's also a LaFerrari successor in the works.
However, the company will have to face much stricter emissions regulations now that it is selling more than 10,000 cars, which is the limit regulators in Europe allow automakers to escape the stricter rules. As a result, Ferrari plans to introduce many more hybrids. The company has just launched the plug-in hybrid SF90 Stradale and is targeting a 60-percent electrified lineup by 2022. The company is also looking into more alternatives, such as using hydrogen or biofuels.
Before you start fretting about seeing a red car on every corner, Ferrari makes efforts to protect exclusivity by limiting sales in established markets. For instance, Ferrari's sales in 2019 were actually down 3.3 percent in the Americas, due to what the company describes as a “deliberate geographical rebalancing.”