Ben Gilbert: observation

Transcript context

…Yep. Well, one more thing before we get to analysis, powers, and quintessence. China. You mentioned it earlier, but what's going on for Ferrari in China? So what's going on in the auto industry in China? It's probably the place to start. China's car market is being completely upended by inexpensive, high-quality electric cars. Domestic. EVs domestically from BYD, Xiaomi, and others. This is having a huge impact on brands that expanded into China in the last decade, as we talked a lot about on our Porsche episode. But China is only 7% of Ferrari's sales, down from 10% at its peak. Now, Porsche, on the other hand, China was 33% of their deliveries a few years ago. Which has collapsed all the way to 15% and continues to fall. So the question then is, is Ferrari any less desirable today in China than it was five years ago? And does it fill a different enough job to be done than the domestic supercars for them to weather that storm? Hmm. Interesting. I don't know enough to say, but I would suspect it's probably about as healthy as you can be.…

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