Ferrari’s share price surged as much as 7% on Monday on the back of strong first-quarter earnings.
Its market cap topped $30 billion, putting it ahead of General Motors and Ford.
Ferrari’s shares jumped as much as 7% on Monday, after the Maranello, Italy-based sports car maker reported better-than-expected earnings. Despite shutting its factory in March, the company’s total shipments of cars increased 5% to 2,738. Revenue fell only 1% to $1.02 billion — better than the $852 million analysts expected.
The company also restarted its factories in Maranello and Modena on Monday, and are expected to return to full production on Friday.
Even though Ferrari makes only 10,000 cars a year, compared with General Motors’ production of about 7.7 million vehicles last year, investors are betting that Ferrari’s storied brand name and hefty prices and profit margins are likely to power the stock through the coronavirus crisis better than other auto brands.
Ferrari’s market capitalizaton hit $30.1 billion in early trading Monday, after settling back to $29.8 billion later in the day. General Motors’ market cap fell to under $29.3 billion while Ford’s fell to $19.2 billion. Fiat Chrysler, which spun out Ferrari in 2015, has seen its market cap decline to under $13 billion.