Adam Knight

Yes, the new Ferrari EV looks dumb. We all know it does. But we’re not the target market. China is. And it’s going to fly off dealer lots over there. Worldwide, China is now by far the largest market for luxury goods (Swiss watches, jewelry, high-end fashion, etc.), representing at least 30% of global sales. And it’s an especially critical market for ultra-luxury vehicle brands like Rolls Royce, Bentley, Mercedes’ Maybach line, Porsche’s higher-end models, and Ferrari. There are two major reasons for this: One is that China is simply a massive country, and, as its economy has boomed over the last five decades, it has produced the largest number of wealthy people anywhere in the world outside the US. There are now an estimated 50,000 ultra high net worth individuals ($30M+ net worth) in China, and the number is growing faster than anywhere else on the planet. The second is that China’s wealthy people—far more than those of America and Europe—are willing to spend their money on luxury consumption. The reasons for this are complex—part of it is probably that most Chinese wealth has been generated since only 1990, meaning that most UHNW Chinese families are first- or second-generation nouveau riche; part of it flows from the Chinese “mianzi” concept of social currency, under which signaling personal status via luxury brands is socially incentivized—but the effect is that rich people seek out the most prestigious and expensive brands, and they’re willing to pay to do so. Especially when it comes to ultra-luxury vehicles, which are frequently given as gifts for weddings, the sealing of business relationships, and life milestones. The net effect of this is that the ideal customer profile for Ferrari is no longer a fourth-generation Italian textile heir or an exited San Francisco tech founder; it’s a 32-year-old Chinese guy stepping into a C-suite role at his dad’s copper foundry after getting his MBA from Wharton or INSEAD. These guys want the Ferrari logo, but they want it on something electric (EV’s are highly encouraged by the Chinese government, especially in the large cities in which UHNW people congregate), and they want it on an ultramodern vehicle that looks and feels more like something that came out of a BYD or NIO showroom. So that’s why this new Ferrari EV looks the way it does, rather than like an electrified version of an F40 or a 360 Modena. It might look dumb to us, but it’s not going to look dumb for Ferrari’s shareholders.

Unai Emery not even being nominated for manager of the season with a £28m net spend, a top 4 finish and a European trophy at a club that hasn't won a single thing in 30 years is wrong. But it doesn't hurt Villa or Unai Emery, it just ruins the legitimacy of the award.