Dollars and cents…dollars and cents…The only auto stock I own straddles the top of the heap…unicorns and rainbows have disappointed their flock.
AUTOS
Tesla made headlines in 2022, but the top-performing auto stock had nothing to do with EVs
· This year in auto stocks wasn’t just about Elon Musk and Tesla.
· The automaker with the lowest decline was Ferrari.
· Many once-promising EV startups were among the biggest losers.
Many once-promising EV startups were among the biggest losers, as some ran into capital troubles or couldn’t scale production as quickly as anticipated.
Rivian,
Lucid,
Canoo and
Nikola experienced 76% declines or more year to date.
The company with the smallest decline was
Ferrari, which year to date is only down by about 18% − making it the year’s best-performing automaker stock.
What drove that performance? For starters, the storied maker of high-end sports cars isn’t like other automakers: it’s expected to sell roughly 13,000 of its jewel-like sports cars by year’s end − fewer than giants like General Motors sell in a day. But those coveted cars go out the door at an average selling price of around $322,000 each, according to FactSet estimates.
Even at those prices, the waiting list for a Ferrari is long. The company limits its annual production to preserve its pricing power and exclusivity, a happy situation that gives Ferrari exceptionally strong profit margins and ensures that its factory isn’t likely to be idled anytime soon.
https://www.cnbc.com/2022/12/28/top...rce=iosappshare|com.apple.UIKit.activity.Mail