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Is Lamborghini Becoming the Honda Civic of Exotics Due to Skyrocketing Sales?

By Stocks News   |   Aug 19, 2024 at 03:07 PM EST   |   Stock Market News
Is Lamborghini Becoming the Honda Civic of Exotics Due to Skyrocketing Sales?

You know why I’ve always wanted a Lamborghini? Because in my dust bowl of a town, everyone has Toyota Corollas, and Ford F-1 Fitties. So having a Lambo would definitely turn some heads as I cruise downtown in a city with a population of less than 25,000. (Which is like, the only reason people buy exotics in the first place, right?). 

(Source: Giphy) 

However, while the Lamborghini (owned by the Volkswagen Group), is basically the rolling middle finger to financial prudence, it’s apparently adopted a new slang for it: YOLO b**ches…Translation: Lamborghini is basically becoming the Honda Civic of exotics due to their high demand and everyone and their dog having one (except me, because… well, I apparently suck at life).

(Source: Giphy) 

You see, under the stewardship of CEO Stephan Winkelmann, the brand has witnessed remarkable growth, but according to Winklemen it all has to do with the “YOLO” effect (You Only Live Once for all yo boomers out there). That’s right, the same mentality that used to be reserved for my friends and I at the Florabama on spring break, is now propelling sales to unprecedented heights with an increased amount of buyers. 

(Source: Yahoo Finance) 

In short, Winkelmann's journey with Lamborghini has been nothing short of transformative. Since his initial tenure began in the early 2000s, he has been instrumental in launching iconic models such as the Gallardo and the Urus SUV, which has since become the brand's best-selling model, accounting for a staggering 60% of total sales. See: Covid babies having impact on exotic car owners. 

(Source: Car Soup)

Yet his recent unveiling of the Temerario, the successor to the popular Huracán, has marked a pivotal moment for the brand. Although the Temerario does not feature the beloved V10 engine of its predecessor, it boasts a powerful V8 bi-turbo engine coupled with three electric motors, delivering an exhilarating 907 horsepower and a remarkable 0 to 60 mph time of just 2.7 seconds, faster than you can say “I can’t afford this car.” 

(Source: Robb Report) 

Which is why now, this YOLO effect is stronger than my dad’s disapproval of blowing all of my savings on this womanizer exotic beast. The rise of the YOLO mentality among consumers has significantly influenced Lamborghini's sales trajectory. Despite economic uncertainties and global challenges, Winkelmann has stated that the company is witnessing a sustained demand for luxury vehicles. “Since the end of COVID, we have had this ‘YOLO’ effect...despite the global crisis, people still want to buy those cars,” he remarked. 

(Source: Reuters) 

With that said though,  it’s not just the old guard getting in on the action. Lamborghini’s going green…ish. The Revuelto, a flagship model featuring a V12 hybrid system, has already sold out for the next production year, for one reason: Because it aligns with the global trends towards tree huggers eco-friendliness. 

(Source: Motor 1) 

Plus, even in places like India, where the roads are more pothole than pavement, supercar sales are skyrocketing. Sales have surged, with projections estimating between 1,200 and 1,300 units for 2024, a notable increase from 1,000 units the previous year (credit to Dubai on that one). And now, with a projected record year on the table for 2024, Winklemann aptly notes: “This year is going in a perfect way”. 

So with all of that said, what does this mean for investors? 

Well considering that Lamborghini is owned by Volkswagen, this could end up having a major impact on Volkswagen’s stock going into 2025. With the stock being down -13.46% YTD, yet +5.12% over the past five days, it looks like Lamborghini’s optimistic outlook is set to play a major rally in a potential turnaround in the coming weeks. 

(Source: Google Finance) 

So for all you degens out there, “BTFD” if you want, but really this is just a stark warning to all of you investors for when you start seeing more of these cars show up in towns all across the country. For guys like me, having a Lamborghini is the tangible expression of "I worked my a$$ off to get it"…

But with this YOLO effect sweeping throughout the degen/Wall Street Bets generation, it’s kind of taking away the scarcity a bit. 

(Source: Big Toys Direct) 

Now of course those are just my personal opinions on the matter, but now I know that whenever I envy someone in a Lambo beside me at the stoplight, it might just be the work of YOLO or “I just got my trust fund” instead of the classy, “I started from the bottom now I’m here” reason. 

(Source: Meme Generator) 

So in the end, while Volkswagen is currently trading on the OTC markets under $VWAPY, keep an eye on this stock, or just YOLO and buy a Lambo yourself. Either one could possibly pay dividends for you in the future - whether that’s a potential soaring stock, or a few “oohh’s and aww’s” at your local gas station. 

(Source: Giphy)

Stocks.News does not hold positions in companies mentioned in the article. 

 

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Disclaimer: Information provided is for informational purposes only, not investment advice. We do not recommend buying or selling stocks. Stock price discussions are based on publicly available data. Readers should conduct their own research or consult a financial advisor before investing. Owners of this site have current positions in stocks mentioned thru out the site, Please Read Full Disclaimer for details Here https://app.stocks.news/page/disclaimer


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