📈 SigmaTrader Blog

Ferrari ( $RACE ), the legendary Italian automaker, has announced price increases on select models in response to the possibility of a 25% tariff on imported vehicles under President Donald Trump’s proposed trade policies. While some automakers might struggle to pass increased costs to customers, Ferrari’s ability to do so with minimal resistance is a testament to its formidable competitive moat. The Price Hike and Its Impact Starting April 1, Ferrari ( $RACE ) will raise prices by up to 10% on some models, potentially adding around $50,000 to the cost of a typical Ferrari. Unlike mass-market carmakers that rely on competitive pricing to maintain demand, Ferrari is in a unique position where its exclusivity allows it to dictate prices without significant pushback from its affluent customer base. The company’s CEO, Benedetto Vigna, reaffirmed Ferrari's commitment to keeping all production in Maranello, Italy, even as it prepares to launch its first all-electric vehicle next year. A ...