MW Ferrari wastes no time announcing price hikes - though it's not going to pass along the entire tariff increase

By Steve Goldstein

Ferrari says it will increase prices on most of its models by as much as 10%

Ferrari is not your typical carmaker: Its wealthy customers are willing to pay prices that can go as high as half a million dollars. Now, thanks to President Donald Trump's newly announced tariffs, they'll be paying even more.

Ferrari says pricing won't change for models imported before April 2, but from there, "new import conditions will be partially reflected in pricing" by up to 10%. That means the Maranello, Italy-based carmaker will be absorbing part of the 25% tariff increase announced by Trump on Wednesday.

Ferrari said it will exclude three models - the Ferrari 296, SF90 and Roma - from the price hikes.

The company said there's now a risk of a 50-basis-point reduction in profit margins - the carmaker had targeted 29% operating margins this year - although it otherwise reiterated financial targets that call for adjusted earnings per share to grow by at least 2% on at least 5% revenue growth.

Analysts at J.P. Morgan noted that the U.S. accounts for about 40% of Ferrari's global sales - and is a high-margin market.

They said Ferrari has passed along big price increases before, such as one of 7% in the U.K. after Brexit. But they also pointed out that Ferrari purchases are "arguably amongst the most discretionary."

U.S.-listed Ferrari shares $(RACE)$ (IT:RACE) rose 2% in early trading. The stock has been lackluster this year, down 1%.

-Steve Goldstein

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March 27, 2025 11:02 ET (15:02 GMT)

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