Forget Tesla: This 1 Auto Stock Is an Outperformer in 2025
For years, Tesla (TSLA) has owned the spotlight, blazing through the electric vehicle (EV) space like a comet, reshaping the auto industry and Wall Street's expectations all in one wild ride. But in 2025, that shine is starting to fade. The stock has stumbled out of the gate, weighed down by slowing deliveries, Elon Musk's political distractions, and intensifying heat from Chinese EV makers. Price cuts, shrinking margins, and uncertainty around U.S. tax credits only add fuel to the fire.
Meanwhile, across the Atlantic, an Italian icon, Ferrari N.V. (RACE), is stealing the show. Defying tariffs and economic turbulence, the auto titan thrives on unwavering demand. Thanks to its affluent clientele, Ferrari remains largely tariff-resistant, with analysts highlighting how its appeal has historically endured through downturns, making it one of the rare, resilient gems in the auto world.
Meanwhile, the company's guidance is strong, and the stock has been on a six-week climb while some of its industry peers stall. With its first EV slated for October 2025, Ferrari is just getting started, and it might just leave Tesla in the rearview. Hence, investors could consider this luxury auto giant's stock.
About Ferrari Stock
Founded in 1947, Maranello-based Ferrari N.V. (RACE) is more than a carmaker – it is a legend. With a legacy built on roaring engines, Formula 1 dominance, and masterful craftsmanship, Ferrari embodies the pinnacle of luxury and performance.
Valued at $112 billion by market cap, the luxury automaker's ride this year has not been without bumps, with shares down 10% from their 52-high of $509.13. Yet, over the past 52 weeks, RACE stock still clocked a 10.1% gain. After a turbocharged Q4, fueled by a winning product mix and booming custom orders, shares accelerated 6.5% in just the last month, reminding investors that the prancing horse always finds a way back to the front of the pack.
Wall Street Cheers as Ferrari Speeds Past Q4 Estimates
On Feb. 4, Ferrari roared past Wall Street's Q4 expectations. Revenue raced 14% higher year-over-year to €1.7 billion. The bottom line truly turned heads as EPS jumped 32% to €2.14 ($2.28), leaving Wall Street's $1.89 per share prediction eating dust.
A richer product mix and booming demand for bespoke models pushed average selling prices higher, lifting car and spare parts revenue by 16% annually and brand-related income by 22%. Even shipments ticked up 2% to 3,325 units in Q4, while full-year deliveries edged up 1% to 13,752 units, despite global headwinds. Operating profits punched 26% higher to €468 million.
Fresh off a powerhouse quarter, Ferrari wasted no time shifting into high gear again. On March 27, shares climbed another 3% after the automaker unveiled a bold plan to counter the U.S. tariff shock - price hikes of up to 10% on select models starting April 2.
Ferrari knows its buyers won't blink. As long as demand outpaces supply and ultra-luxury launches roll on, Ferrari's earnings engine shows no signs of stalling.
Ferrari's 2025 roadmap is built for speed. Management targets net revenue to be greater than €7 billion, up over 5% year-over-year, while adjusted EPS are expected to race past €8.60. Adjusted EBITDA is set to exceed €2.68 billion, aiming for a sleek 38.3% margin.
Ferrari is gearing up to release its Q1 earnings results on Tuesday, May 6, before the bell. Analysts monitoring the auto company anticipate the first quarter's profit to rise 11.3% year over year to $2.36 per share.
What Do Analysts Expect for Ferrari Stock?
Analysts have deemed the auto stock a 'Moderate Buy.' Out of the 15 analysts covering the stock, seven recommend a 'Strong Buy,' two advise a 'Moderate Buy,' five suggest a 'Hold,' and the remaining one has a 'Strong Sell.'
RACE's mean price target of $515.13 implies the stock has upside potential of 12%. The Street-high target of $575 suggests the stock could rally as much as 25% from the current price levels.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
2 hours ago
- Cision Canada
Unifor members at DHL Express Canada locked out after refusing to accept concessions
TORONTO, June 8, 2025 /CNW/ - Unifor members at DHL Express Canada were locked out by their employer after midnight on June 8, after the workers refused to accept concessions put forth by the company. "We will not stand by while DHL locks out our members across the country and threatens to use scabs in an attempt to pressure our members to take concessions. Our members deserve respect and a fair contract," said Unifor National President Lana Payne. "We expect DHL to abide by the law on the books, passed unanimously by Parliament, which will come fully into force later this month. A law that bans the use of replacement works in a legal dispute. It is reprehensible that this company thinks they can bust our members' right to fair and free collective bargaining by using scab labour." Some concessions the company is pushing include change driver pay system resulting in a loss of money, driving 100 km. to get to their routes or pick up their freight with no compensation. Other concessions involve proposing language that will allow the company to refuse accommodation, laying off employees, and proposing reducing drivers' daily guarantee. The company has also rerouted pickups across the whole country while reducing pay for owner operators. Hours before the deadline, the employer added numerous new proposals and concessions. The union's bargaining priorities remain improving working conditions—including access to clean and secure washrooms—securing fair wages, addressing surveillance and automation issues and recognition and respect for workers. The company filed its intention to lock out workers on June 4 – four days before the deadline to reach an agreement. "By imposing a lockout, DHL is choosing confrontation over negotiation," said Unifor Quebec Director Daniel Cloutier. "This is a serious decision that deprives dedicated workers of their livelihoods. But let's be clear: our members will not be intimidated. They are united, standing strong, and determined to obtain the respect and working conditions they deserve." Unifor DHL members voted 97% for strike action if necessary last month. Unifor represents over 2,100 DHL Express Canada workers who as truck drivers, couriers, warehouse and clerical workers across Canada, at Locals 114 in British Columbia, 700 in Quebec, 755 in Manitoba and Saskatchewan, 4005 in Nova Scotia, 4457 in Ontario and members in DHL Alberta. Unifor's legal department sent a letter to DHL, cautioning them of hiring scabs –– as anti-scab legislation, which the union campaigned diligently for, is set to come in on June 20. The union firmly believes the timing of the lockout notice is tied to the incoming legislation. The German-based parcel delivery giant's annual profit is roughly $3.3 billion Euro ($4.6 billion CDN) and revenue from its significant and growing North American enterprise is worth approximately ($9.4 billion CDN). And yet, the employer is demanding changes and concessions to working conditions that will negatively affect the pay of Unifor DHL members. Customers in Canada will likely be affected if they use other couriers, including UPS and Loomis, because of integrated contracts with other freight companies. DHL Express Canada has 50,000 customers, including Temu, SHEIN, Lululemon and Siemens Canada. The labour dispute could also potentially cause major disruptions to the Canadian Grand Prix in Montreal, June 13 to 15, due to DHL's responsibility for transporting Formula One vehicles. Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future.
Winnipeg Free Press
4 hours ago
- Winnipeg Free Press
Chinese hackers and user lapses turn smartphones into a ‘mobile security crisis'
WASHINGTON (AP) — Cybersecurity investigators noticed a highly unusual software crash — it was affecting a small number of smartphones belonging to people who worked in government, politics, tech and journalism. The crashes, which began late last year and carried into 2025, were the tipoff to a sophisticated cyberattack that may have allowed hackers to infiltrate a phone without a single click from the user. The attackers left no clues about their identities, but investigators at the cybersecurity firm iVerify noticed that the victims all had something in common: They worked in fields of interest to China's government and had been targeted by Chinese hackers in the past. Foreign hackers have increasingly identified smartphones, other mobile devices and the apps they use as a weak link in U.S. cyberdefenses. Groups linked to China's military and intelligence service have targeted the smartphones of prominent Americans and burrowed deep into telecommunication networks, according to national security and tech experts. It shows how vulnerable mobile devices and apps are and the risk that security failures could expose sensitive information or leave American interests open to cyberattack, those experts say. 'The world is in a mobile security crisis right now,' said Rocky Cole, a former cybersecurity expert at the National Security Agency and Google and now chief operations officer at iVerify. 'No one is watching the phones.' US zeroes in on China as a threat, and Beijing levels its own accusations U.S. authorities warned in December of a sprawling Chinese hacking campaign designed to gain access to the texts and phone conversations of an unknown number of Americans. 'They were able to listen in on phone calls in real time and able to read text messages,' said Rep. Raja Krishnamoorthi of Illinois. He is a member of the House Intelligence Committee and the senior Democrat on the Committee on the Chinese Communist Party, created to study the geopolitical threat from China. Chinese hackers also sought access to phones used by Donald Trump and running mate JD Vance during the 2024 campaign. The Chinese government has denied allegations of cyberespionage, and accused the U.S. of mounting its own cyberoperations. It says America cites national security as an excuse to issue sanctions against Chinese organizations and keep Chinese technology companies from the global market. 'The U.S. has long been using all kinds of despicable methods to steal other countries' secrets,' Lin Jian, a spokesman for China's foreign ministry, said at a recent press conference in response to questions about a CIA push to recruit Chinese informants. U.S. intelligence officials have said China poses a significant, persistent threat to U.S. economic and political interests, and it has harnessed the tools of digital conflict: online propaganda and disinformation, artificial intelligence and cyber surveillance and espionage designed to deliver a significant advantage in any military conflict. Mobile networks are a top concern. The U.S. and many of its closest allies have banned Chinese telecom companies from their networks. Other countries, including Germany, are phasing out Chinese involvement because of security concerns. But Chinese tech firms remain a big part of the systems in many nations, giving state-controlled companies a global footprint they could exploit for cyberattacks, experts say. Chinese telecom firms still maintain some routing and cloud storage systems in the U.S. — a growing concern to lawmakers. 'The American people deserve to know if Beijing is quietly using state-owned firms to infiltrate our critical infrastructure,' U.S. Rep. John Moolenaar, R-Mich. and chairman of the China committee, which in April issued subpoenas to Chinese telecom companies seeking information about their U.S. operations. Mobile devices have become an intel treasure trove Mobile devices can buy stocks, launch drones and run power plants. Their proliferation has often outpaced their security. The phones of top government officials are especially valuable, containing sensitive government information, passwords and an insider's glimpse into policy discussions and decision-making. The White House said last week that someone impersonating Susie Wiles, Trump's chief of staff, reached out to governors, senators and business leaders with texts and phone calls. It's unclear how the person obtained Wiles' connections, but they apparently gained access to the contacts in her personal cellphone, The Wall Street Journal reported. The messages and calls were not coming from Wiles' number, the newspaper reported. While most smartphones and tablets come with robust security, apps and connected devices often lack these protections or the regular software updates needed to stay ahead of new threats. That makes every fitness tracker, baby monitor or smart appliance another potential foothold for hackers looking to penetrate networks, retrieve information or infect systems with malware. Federal officials launched a program this year creating a 'cyber trust mark' for connected devices that meet federal security standards. But consumers and officials shouldn't lower their guard, said Snehal Antani, former chief technology officer for the Pentagon's Joint Special Operations Command. 'They're finding backdoors in Barbie dolls,' said Antani, now CEO of a cybersecurity firm, referring to concerns from researchers who successfully hacked the microphone of a digitally connected version of the toy. Risks emerge when smartphone users don't take precautions It doesn't matter how secure a mobile device is if the user doesn't follow basic security precautions, especially if their device contains classified or sensitive information, experts say. Mike Waltz, who departed as Trump's national security adviser, inadvertently added The Atlantic's editor-in-chief to a Signal chat used to discuss military plans with other top officials. Secretary of Defense Pete Hegseth had an internet connection that bypassed the Pentagon's security protocols set up in his office so he could use the Signal messaging app on a personal computer, the AP has reported. Hegseth has rejected assertions that he shared classified information on Signal, a popular encrypted messaging app not approved for the use of communicating classified information. China and other nations will try to take advantage of such lapses, and national security officials must take steps to prevent them from recurring, said Michael Williams, a national security expert at Syracuse University. 'They all have access to a variety of secure communications platforms,' Williams said. 'We just can't share things willy-nilly.'
Globe and Mail
8 hours ago
- Globe and Mail
Does the EV Industry Have a Truck Problem?
There's a truth in Detroit for Ford Motor Company (NYSE: F) and General Motors, and that's that trucks are king. The dirty little industry secret, if you can call it a secret, is that full-size trucks cost only marginally more to produce than a passenger car, yet the former can sell for two to three times as much. Full-size truck sales are the backbone of Detroit automakers, but as the industry transitions to electric vehicles the scene may be set to change. In fact, the EV industry might have a truck problem, and that would be horrible news for auto investors. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Disappointing results Long, long ago Tesla (NASDAQ: TSLA) CEO Elon Musk essentially mocked stereotypical trucks noting their stale design. Perhaps that's why the young EV maker swung for the fences with the Cybertruck's controversial design. But the unique design didn't stir up sales as much as it stirred conversation. Originally predicted to reach annual sales between 250,000 to half a million units, the Cybertruck has been a commercial flop. It reached only 40,000 U.S. registrations last year, and while that was good enough to be the top EV pickup truck, it was a fraction of original estimates. Because Tesla doesn't break out its sales per model, registrations can serve as a proxy to sales. Ford's highly anticipated F-150 Lightning also disappointed compared to initial hype. Ford noted before the truck's launch it had 200,000 reservations and anticipated producing 150,000 trucks annually. Its actual results were a more modest 24,695 registrations in 2023 before growing to 32,893 in 2024. Rivian (NASDAQ: RIVN), which only offers the R1T, R1S, and its electric delivery van, relies on its truck for a substantial chunk of its business, but also saw less-than-thrilling results. Rivian last reported its backlog in late 2022 at 114,000 for the R1T and R1S combined, and not only did its registrations of 11,311 feel lackluster in 2023, they actually declined to 9,876 last year. What's the problem? The problem facing investors and their love of truck profits is twofold. On one end, we have the consumer issue, which is the stigma that electric powertrains are forced to their brink when it comes to performance and towing. Consumers that use their trucks as tools sometimes have difficulties with the concept of EVs performing at the required level. On the other end, the business case also gets more difficult for trucks that require towing power. Towing requires immense power and thus larger batteries which, as the most expensive component of an EV, pushes the cost up significantly. That eats into the precious juicy margins that full-size trucks have historically presented. The head of Rivian's rival company, Lucid, had this to say when discussing the potential of Lucid making an electric truck: "I really think that it's very tough to make an electric pickup truck work today," Lucid CEO and CTO Peter Rawlinson said, according to InsideEVs. "Not one that's usable and cost-effective." At the end of the day, it's important for investors to note that trucks are struggling in the EV industry. Full-size trucks have long been the backbone for automakers that thrive in the segment. Full-size trucks haul profits like few other segments can. But without a great deal of battery technology progress or cost reduction, the day of lucrative full-size truck profits could be over for automakers in the near term. Should you invest $1,000 in Ford Motor Company right now? Before you buy stock in Ford Motor Company, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ford Motor Company wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
