Ferrari Tanks 10-13-25 - Becker Business

Summary3 min read

Becker Business Podcast: "Ferrari Tanks"

Host: Scott Becker
Date: October 13, 2025

Episode Overview

In this episode, Scott Becker provides an update on Ferrari's recent business challenges, focusing on the company's lowered forecasts, the impact of tariffs, slowing sales, and comparisons with other high-end automobile brands. The theme centers around how shifting economic and market conditions affect luxury car manufacturers, particularly Ferrari, and broader reflections on the luxury automobile market.

Key Discussion Points & Insights

1. Ferrari’s Lowered Forecasts

Ferrari has recently issued another reduction in its sales and financial forecast.
Reasons for Downturn:
- Tariffs: Increased tariffs, particularly affecting Ferraris exported from Europe to other markets, are raising prices and reducing demand.
  - “Part of (the slowdown is) based on tariffs... if you're in Europe and sending them here, that just drives the price out of the up on them and drives down demand.” (00:39)
- Niche Market Limits: There are only so many potential buyers for ultra-luxury vehicles.
  - “There's only so many people that want to buy a $200,000 plus car.” (00:16)
  - Local anecdote: Becker references people in his own town who drive Ferraris “to show how well they've done economically.”

2. Market Numbers & Stock Performance

Ferrari’s stock has dropped down 20% over the last month and 16% over the last week as new forecasts emerged.
- “It is down now 20 over the last month and down 16 over the last week as it reforecasts for the years year and basically says that sales are slowing.” (00:33)
Ferrari is down 4.3% today and 10% year to date.
- “Fry is down another 4.3% today. Down 20 month to date. ... but only down 10 year to date. So watching that with interest.” (01:32)
Maserati and Ferrari sell 11,000 to 15,000 vehicles per year, highlighting their exclusive market.

3. Industry Comparisons

Porsche:
- Sells significantly more vehicles—almost 300,000 cars per year.
- Many Porsche models are priced lower ($50,000–$70,000), making them more accessible than Ferraris or Maseratis.
  - “Porsche sells the most of all these brands, 300,000 cars a year almost. ... Many of their cars sell for 50 to $70,000. It’s not like Ferrari and Maserati where the average price is a lot, lot higher.” (01:06)
Style Updates:
- Ferrari, Porsche, and Maserati all face pressure to regularly update their models and branding to maintain customer interest.

4. Personal Observations

Becker expresses a personal fascination with luxury automobile trends and how these brands perform in fluctuating markets.
- “I find it fascinating to watch what’s going on.” (01:26)

Notable Quotes & Memorable Moments

On Displaying Wealth:
“Many of them are compensating to show how. How well they've done economically. And so they're driving the Ferraris to show that we all know who. Who they are and what they did and so forth. And it is what it is. God bless.” (00:20)
On Tariffs and Demand:
“If you're in Europe and sending them here, that just drives the price out of the up on them and drives down demand.” (00:41)
On Ferrari Compared to Porsche and Maserati:
“Porsche sells the most of all these brands, 300,000 cars a year almost. But many of their cars sell for 50 to $70,000. It's not like Ferrari and Maserati where the average price is a lot, lot higher.” (01:06)
Closing Rally Cry:
“Gentlemen, start your engines. And I guess that goes with this talking Ferrari.” (01:50)

Timestamps for Important Segments

00:00–00:16 — Introduction and Ferrari’s new lowered forecast
00:16–00:33 — Discussion of local Ferrari drivers and exclusivity
00:33–00:44 — Stock performance: Recent declines and overall performance
00:44–01:17 — Impact of tariffs, market size, and competitor comparisons (Porsche, Maserati)
01:17–01:32 — Sales figures and recap on slowing luxury market
01:50–End — Memorable signoff and closing thoughts

Episode Tone & Takeaways

Becker’s tone is candid, lightly humorous, and inquisitive, offering both data and personal anecdotes. The episode succinctly examines the intersection of market forces, exclusivity, and consumer motivations behind Ferrari’s recent struggles—making it informative for business and car enthusiasts alike.

For more business updates and commentary, follow the Becker Business and Becker Private Equity podcasts.

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Transcript1 lines

[00:00]
A
This is Scott Becker with the Becker Business and the Becker Private Equity podcast. Today's discussion is Ferrari tanks. So here's what's going on with Ferrari again. We talked about them recently. They've just lowered their forecast again. Part of spaced on tariffs, part of it's based on there's only so many people that want to buy a $200,000 plus car. There's a few of them in the town that I live in, and many of them are compensating to show how. How well they've done economically. And so they're driving the Ferraris to show that we all know who. Who they are and what they did and so forth. And it is what it is. God bless. But anyways, Ferrari notwithstanding, the local guys in my town that drive Ferraris, it is down now 20 over the last month and down 16 over the last week as it reforecasts for the years year and basically says that sales are slowing. And part of this, of course, is tariffs. If you're in Europe and sending them here, that just drives the price out of the up on them and drives down demand. So that's part of it. Second is Ferrari, Porsche, Maserati, that they've all got to do an update of their styles and update of what they're doing. Porsche sells the most of all these brands, 300,000 cars a year almost. But. But many of their cars sell for 50 to $70,000. It's not like Ferrari and Maserati where the average price is a lot, lot higher and they sell 11 to 15,000 vehicles a year. But in any event, I find it fascinating to watch what's going on. Fry is down another 4.3% today. Down 20 month to date. Or yeah, month to date, but. But only down 10 year to date. So watching that with interest. Thank you for listening to the Becker business podcast, the Becker Private equity podcast. God bless America. Gentlemen, start your engines. And I guess that goes with this talking Ferrari. Gentlemen, start your engines. But. But. Let's go. Thank you for listening.