$RACE: Ferrari Luce will unlock an entirely new customer segment.

Everyone thinks the car is ugly, sure.

But I think the market is not entirely pricing how the Luce will expand their TAM to an entirely new customer base (Ferrari expects \~50% of Luce buyers to be entirely new customers). Younger and wealthy tech billionaires and entrepreneurs who never identified with a sleek Ferrari, now are potentially able to with Luce.

Looking back to 2022, The Purosangue was Ferrari's first ever SUV and everyone then called it a betrayal. But it was a highly successful product, now having a [two-year waiting list](https://www.reddit.com/r/supercars/comments/1sp7ps0/a_2year_wait_for_a_ferrari_purosangue_is_one/). Cristiano Ronaldo and Alisson Becker own a Purosangue.

The pattern is structurally similar here, and I think the Luce would also end up being a highly successful addition for Ferrari, despite the public backlash. CEO Vigna has also claimed that order books for the Luce already extend into late 2027.

$RACE is currently trading at \~35x earnings, well below its 5-year average of \~44x. Expected to grow high single digits for '26 and '27, and they are actively buying back their shares up to 2030.

Thoughts?

My full analysis: [https://economiyaki.substack.com/p/ferrari-luce-a-new-tam](https://economiyaki.substack.com/p/ferrari-luce-a-new-tam)