(Bloomberg) — In 2019, I wondered if we had reached the pinnacle of supercars. What a mistake.
Looking at the last 12 months in the automotive world, the Year of the Supercar could be 2025, as there now appears to be no limit to the number of cars that Bugatti, Pagani, Koenigsegg, Lamborghini and Ferrari can sell this year. While heavy tariffs, sluggish electric vehicle sales and growing competition from Chinese brands have many traditional manufacturers struggling, these luxury brands are reporting robust profits and full order books, with waits that can exceed a year.
Luxury cars, in general, are a big focus in 2025. The average price of a new car in this segment has reached record levels — above $50,000 — in the US, as demand for these vehicles continues to grow. Manual transmissions powered by internal combustion engines had wide appeal among wealthy consumers. The most coveted models were personalized to reflect the personality of their owners.
Meanwhile, global electric vehicle sales continued to grow, but in many markets not as quickly as expected. At Audi, Ford, General Motors and Volvo, among others, electric vehicles have suffered from competition from well-made and affordable Chinese offerings; with the end of subsidies that supported sales; and with the politicization that made the topic a hot point of discussion in many homes.
Who had difficulties
Tesla Inc. plunged in 2025, facing steep declines in global sales and profits, as well as losing market share in the US. The company has suffered from several lawsuits related to doors that critics say did not open during fatal accidents, and from protests against co-founder and CEO Elon Musk, including at his new Hollywood restaurant. Many Tesla owners in Los Angeles put stickers on their cars saying “I bought this before we knew Elon was crazy.”
Lucid Group Inc. also suffered from supply chain issues that caused it to lose money.
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But Porsche suffered perhaps the biggest decline in 2025, due mainly to deep financial problems and the failure of its electric vehicles to win over consumers — and this despite intense marketing campaigns with celebrities such as Dua Lipa and Orlando Bloom promoting the brand.
In September, Germany’s main stock index expelled Porsche after the company cut its forecasts three times since January. (Limited demand for the electric Taycan and Macan and lower-than-expected sales in China were the biggest problems.) At the time of the exit, Porsche shares had fallen 33% in the previous 12 months. A month later, in October, Porsche reported its first quarterly loss as a listed company, with a hit of €3.1 billion ($3.6 billion). The brand has gone from being compared favorably to Ferrari to warning that it will barely make a profit this year.
More critically, longtime Porsche customers—among its most loyal and vocal buyers—have taken to social media to complain about the high prices of more expensive models and the transition to digital rather than analog components in car interiors. After a change of executives, the CEO of Porsche AG, Oliver Blume, will soon leave his position to dedicate himself solely to the Volkswagen Group. New CEO Michael Leiters will take over Porsche on January 1st.
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Who stood out
Porsche stands in stark contrast to the brand that looks strongest coming out of 2025: Ferrari. The company has maintained huge profit margins and has full order books through 2027, putting it far ahead of struggling luxury rivals such as Aston Martin, which lowered its delivery targets at the start of the year.
One reason for the success of Europe’s most valuable automaker is that it is not as vulnerable to the Chinese market as other luxury brands: the country accounts for less than 10% of Ferrari’s sales. Furthermore, Ferrari benefited from the decision to slow down its electrification. In October, executives said that by 2030, just 20% of new Ferraris sold will be electric, down from a previous target of 40%. The move will likely help protect the brand’s residual values, unlike what happens with the Taycan.
Not everything was smooth sailing for the Italian automaker. In October, it had to adjust its profit expectations. Its cars cost more than ever and are disproportionately expensive compared to the rest of the auto market, which analysts say could drive away even loyal customers. The average price of a Porsche AG vehicle is $115,407, the highest among standard production manufacturers. A Ferrari, on average, costs four times that amount. And the arrival of the brand’s first electric car, the Elettrica, in 2026, is a risk, as the majority of buyers in this segment are not purchasing electric cars.
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Still, Ferrari fans are loyal. More than 80% of vehicles sold go to existing customers, and there is already great anticipation for the beautiful Amalfi model. I predict this brand will maintain its throne for the foreseeable future.
Brands to keep an eye on
For next year, I have my eye on Audi and Cadillac.
Both will enter Formula 1 in 2026, with Audi taking over Sauber and Cadillac entering as the 11th team in the category. (Ford will also return to F1, albeit on a smaller scale, supplying power units to the Oracle Red Bull Racing and Scuderia AlphaTauri teams.) This is especially exciting for Cadillac, which is looking to shed its old-fashioned image. It needs to make more cars that can authentically compete with traditional manufacturers like BMW, Mercedes-Benz and Porsche.
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The value of getting into F1 goes far beyond the old adage “race on Sunday, sell on Monday,” although that is still true to some extent. F1 can help the evolution of the Cadillac brand because it is finally considered a mainstream cultural event in the US. (The average audience for U.S. races between ESPN and ABC this season was 1.3 million live viewers, the highest in F1 history, surpassing the 2022 record of 1.2 million and a 147% increase since 2017, according to ESPN.) Brands like LVMH and Hello Kitty invest millions to be associated with the series: F1 is good for marketing, technology development and exciting social media content.
The choice of Cadillac drivers, Valtteri Bottas and Sergio Perez, is especially smart. Both are charismatic and fan favorites, offering something fun to watch even if the team doesn’t score many points in their debut. (Ferrari will make the engines for Cadillac until the American team starts producing its own in 2029.)
Audi doesn’t need as much of a brand boost as Cadillac, but it could use a shot of adrenaline after a few years of relative calm. Although its F1 drivers, Nico Hülkenberg and Gabriel Bortoleto, may have less on-screen personality than the mustachioed Bottas, Audi has an extensive and successful history in motorsport dating back more than a century. I expect her to finish further ahead in the starting pack than her Detroit rival.
What’s more, Audi is already generating excitement for some new cars in 2026. In September in Milan, the brand unveiled a sleek two-seater concept car, which CEO Gernot Döllner says is the model for Audi’s future. I consider this to be great news, as the Concept C has an elegant, ultra-modern interior and details that remind us of great Audis of the past, such as the Audi TT and the Audi R8.
With products like this on the horizon, the high-end luxury sports car theme should remain strong in 2026 and beyond.
To contact the author of this article:
Hannah Elliott in Los Angeles by email
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