"Surprise, Surprise -- BYD Co. Is Not Invincible After All"
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 07 2025
0mins
Should l Buy RACE?
Source: NASDAQ.COM
BYD's Domestic Struggles: BYD's sales in China have stagnated, with total deliveries flat year-over-year and a decline in domestic sales for four consecutive months due to intense competition and a price war among Chinese automakers.
International Growth: Despite challenges at home, BYD's overseas sales surged by 146% year-over-year, indicating strong international demand and successful expansion strategies, including local production and a multibrand approach.
Competitive Advantages: BYD's vertical integration, controlling its supply chain and manufacturing most components in-house, provides it with a competitive edge in production speed and cost, essential for its global strategy.
Future Outlook: While facing difficulties in the Chinese market, BYD is expected to continue thriving internationally, making it a company to watch for potential investment opportunities.
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Analyst Views on RACE
Wall Street analysts forecast RACE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RACE is 448.83 USD with a low forecast of 349.74 USD and a high forecast of 555.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
11 Buy
3 Hold
1 Sell
Moderate Buy
Current: 334.760
Low
349.74
Averages
448.83
High
555.00
Current: 334.760
Low
349.74
Averages
448.83
High
555.00
About RACE
Ferrari NV, known as Ferrari, is an Italy-based designer, manufacturer and retailer of sports cars that is incorporated in the Netherlands. It operates under the Ferrari brand. Its sports cars portfolio includes, among others, F12berlinetta, FF, Ferrari 488 GTB, 488 Spider, 458 Speciale, Ferrari California T, F12tdf and LaFerrari. The Company also offers financing services through Ferrari Financial Services. It also produces limited series and one-off cars. The Company divides its regional markets in EMEA (Europe, the Middle East, India and Africa), Americas, Greater China and Rest of APAC (Asia-Pacific region, excluding Greater China) and is active in over 60 markets worldwide through a network of authorized dealers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholding Update: As of January 30, 2026, Ferrari held 16,837,806 treasury shares, representing 8.68% of total issued shares, reflecting a stable capital structure during the buyback process.
- Long-term Strategic Planning: The multi-year buyback program is expected to execute approximately €3.5 billion by 2030, showcasing the company's strong confidence in future growth and its commitment to enhancing shareholder returns through ongoing capital repurchases.
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- Unique Brand Strategy: Ferrari's focus on maintaining luxury, status, and scarcity rather than maximizing sales allows it to stand out in the competitive automotive market, ensuring strong pricing power.
- Strong Profitability: Over the past five years, Ferrari has achieved an average quarterly operating margin of 26.9%, a figure that is enviable among its peers, showcasing its exceptional operational efficiency and profitability.
- Overreaction in Market: Although Ferrari's 2030 outlook suggested slowing revenue growth, leading to a 34% drop in stock price, analysts believe this may be a conservative forecast, presenting a buying opportunity for investors.
- Attractive Valuation: With a current price-to-earnings ratio of 34.3, significantly lower than its five-year average, Ferrari's stock is positioned as a potentially high-quality investment for the next decade.
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- Quantum Battery Breakthrough: QuantumScape is developing solid-state lithium-metal batteries that promise faster charging, longer range, and lower costs, potentially becoming the 'holy grail' for EV batteries, which could attract more institutional investors.
- Accelerated Commercialization: Transitioning from research to initial revenue in early 2026, QuantumScape began shipping QSE-5 cell samples in Q3, marking a significant milestone toward commercial production and expected to reduce investment risks.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's shipments, demonstrating a robust approach to the EV market, with high demand and pricing power allowing the company to maintain profitability during the transition.
- Dual Investment Perspectives in EV Market: QuantumScape and Ferrari represent two distinct investment strategies in the EV market, with QuantumScape poised to lead solid-state battery production for high-risk, high-reward investors, while Ferrari offers a stable transition through hybrids, catering to varying risk appetites.
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- Partnership with Volkswagen: The joint venture with PowerCo will enable QuantumScape to license its battery technology for approximately 1 million vehicles annually, which is anticipated to generate a stable revenue stream through royalty payments.
- Ferrari's Hybrid Strategy: In Q3 2025, hybrids accounted for 43% of Ferrari's total shipments, demonstrating a robust positioning in the EV market, while high demand and pricing power allow the company to maintain impressive profit margins.
- Market Outlook and Risks: While QuantumScape's solid-state batteries could revolutionize the EV industry, its stock remains highly speculative and volatile, whereas Ferrari offers a more stable investment approach by balancing shipments of traditional supercars with its new hybrid models.
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