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Here’s Why It is High Time to Invest in Ferrari as Demand for Sports Cars is on the Rise Despite Coronavirus

Although businesses all over the world are experiencing a downturn, the Italian luxury sports car maker Ferrari has shown resilience with its business booming like usual. The business might be down for other car manufacturers, but in the case of Ferrari, it is quite evident that the company is proving itself to weather the wider slowdown in car manufacturing.

The business is booming for the Italian car manufacturing company

The market hit its historic low due to the pandemic, but the stocks of Ferrari have grown by 21% since March 23. The stock, which is currently being traded at a share price of $157, maximized its rate by just 13% in the last week.

Car manufacturers are seeing the worst days of their life because of showrooms being shut and factories being closed due to the outbreak. Just in the United States, big car companies like General Motors and Ford have seen their rates go down by 43 percent and 36 percent, respectively. Comparing the rates with Ferrari, it weathered the downturn of less than 7%.

Ferrari was ready for the crisis

Because of the high turnover in the past years and custom made models, Ferrari was well-positioned to bear the market closure. The car manufacturing giant made significant money in the previous years, thanks to the sports car sales and a constant fan base of potential clients.

The demand for the vehicle is still rising, but the supply is at its historic low that is making the price of its stocks soar higher than ever. The company sells its products before production, which means that the sold orders are yet to be made.

Demand currently far outstrips supply

The company claimed that the demand for the cars is rising day by day and by far there are no cancellations of orders despite the coronavirus. Although the market is unpredictable and extremely volatile, it can be said that the stocks will offer a valuable return after the stock market opens.

The majority of the wall streets guys are swinging the situation in favor of buying the stick with 16 people giving it a buy rating, 5 people gave it a hold rating and only two analysts said that investors should sell their shares. With the majority, if Europe and America on lockdown, Ferrari is prone to face some serious demand-supply gap, this, in turn, could affect the company’s shipments.

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