Since Ferrari spun out from Fiat, it’s been on a tear. Porsche’s public market journey has been bumpier.
The rivalry is beginning to look a little like a one-horse race.
In October 2022, Volkswagen leadership decided to take a leaf out of the Fiat-Ferrari playbook and unleashed Porsche — one of the most lucrative jewels in its crown — from its vast garage of brands, setting up Europe’s biggest IPO in over 10 years at the time. The stock, for the most part, has been stuck in neutral since.
Porsche problems
At yesterday’s close, Porsche shares were down more than 20% from when they first hit the market nearly 2.5 years ago, as some of the luxury carmaker’s shine fades. Things could get worse, too; earlier today, the company posted flatlining annual sales figures and operating profit that was down 23% from 2023, while it reiterated plans to cut 1,900 jobs in the next four years to boost efficiency.
As shares in the company behind iconic models like the 911, which was first introduced more than 60 years ago, have sputtered, Italy’s largest luxury car company, Ferrari, has positively roared since it debuted in 2015.
Vroom vroom
Ferrari, which spun out from Fiat seven years before Porsche went public, has raced ahead in the (nearly) 10 years since it hit the market. Unlike its German rival, the Prancing Horse has kept investors enamored with measuredly infrequent supercar drops, impressive delivery figures, a loyal customer base, and (unlike other luxury titans) its relatively low exposure to China — though even “relatively low” can still be too high. Ferrari shares were up 760% from its 2015 IPO at Tuesday’s close.
