00:00Michael. What do you think about the Ferrari numbers. I know you were at the capital markets day that really brought this stock down so much last year.
00:09Yeah. Very good set of numbers this morning and much needed because you know the shares price is down over 40 percent. And part of that was because of the capital markets
00:18day. They had underwhelming targets for 2030. Management probably focused a bit too much on their electric bev which is just about to come up and probably not
00:28enough on the V12s the limited editions the specials which drive earnings. And it was these cars that that drove the 4Q earnings today.
00:36I should just say I was complaining about this to Matt that their their livery was was horrible for F1. It was really bad. Too much white on it.
00:44Anyway that's a completely separate problem. When it comes to Ferrari what distinguishes Ferrari from Porsche for example.
00:50The fact that Ferrari has been so successful while the other luxury car maker has just been lagging behind so much.
00:56Well certainly volumes. So when Ferrari sells 14000 units or slightly under that year Porsche 300000 units. So it's the scarcity value.
01:06It's the pricing power. So in the fourth quarter the average price of the Ferrari was 470 thousand euros. The average profit per car was
01:15220 thousand euros. So it's very unique and it's pricing and earnings power.
01:21You know Porsche like Ferrari is embracing technical prowess over mechanical intimacy. Both of them have fully digitized computerized electronic cars.
01:35Even the gas motors all have turbos and they limit Porsche limits the amount of mechanical stick shifts that they sell.
01:44Whereas Ferrari doesn't even bother. I suggested to Lawrence Stroll that he just go the other way that he put three pedals in all of his cars and get rid of the screens and embrace the analog. He kind of brushed that off.
01:57But why isn't any major car maker doing that Michael?
02:02Well you know cars are very high tech now. So the ability to update the software you know makes them timeless in many sense. Which has been interesting with the Ferrari Luce in that it's kind of gone a bit retro in the interior design for its new battery electric vehicle. So I think that's very refreshing and it's quite cool actually.
02:23But they only put two pedals in the box. Like why don't and by the way the most expensive Porsche's have a stick right. It's only the mainstream humdrum 911s that get nothing but the PDK. Why don't they certainly Ferrari could sell at a huge premium a stick shift version of whatever they're calling the Roma now.
02:48Sure. That's certainly a possibility. But the electronics do help in terms of making it more drivable. But I agree. The Porsche 911 the stick shift versions are the most enjoyable to drive and they attract very high prices and are very profitable. So maybe that's something Ferrari is missing here.
03:07What do you think Ferrari's missing here?
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