How Ferrari Makes Money

Good morning! Okay, we resisted the urge to do another chart on Nvidia today… but our [colleague did a great one]( for us. Today we’re exploring: - Out of reach: Home-price-to-income ratios have soared. - Also out of reach: Ferrari’s new EV is set to cost $500K+. - To have and to hold’em: Vegas weddings are back. Have feedback for us? Just hit reply - we'd love to hear from you! TOGETHER WITH [Sponsor Logo](   Curbed appeal As wage growth struggles to keep pace with home price inflation, buying a house has felt increasingly out of reach for millions of Americans recently — a trend that’s been ongoing for the last 3+ decades. Indeed, in 2023, a typical home in America will cost buyers 4.9x the median income. That’s a 50%+ increase on the 3.1x price-to-income ratio averaged in 1990 and only slightly below the record figure set in 2022, according to [new analysis]( from the Harvard Joint Center for Housing Studies. Furthermore, this is a phenomenon that’s happening almost everywhere: a whopping 378 out of the 384 American Metropolitan areas (98.4%) that Chartr analyzed from the Harvard report saw rises between 1990 and 2023. Just 2 areas reported a home-price-to-median-income ratio that was the same as in 1990 and only 4 reported a drop. Inflation continues to be the factor in how [Americans perceive]( the economy — and the cost of houses is a major factor in that sentiment. Across the US, home prices have surged by 47% since the start of 2020 and have more than doubled since 2010, based on data from the NAR cited in the report. While new-home construction has fallen to a 4-year [low](, there’s also fewer existing homes entering the market. Rising interest rates have created a "golden handcuff" effect, discouraging homeowners from selling and taking on new, more expensive mortgages. Additionally, more homes are owned by older generations who are less likely to move. This has all culminated in a stark reality: you now need an annual income of $100,000 to afford a median-priced home in nearly half of all metro areas. As for renters? The majority of them are already declaring the American Dream of homeownership [dead](. [Read this on the web instead](   Great news for potential elopers and ordained Elvis impersonators alike: more people are saying “I do” to Las Vegas weddings again following a brief pandemic slump, according to marriage data from Clark County, Nevada. Indeed, the number of marriages filed in Vegas’ home county totalled 7,963 in April — more than 35x the amount seen in the same month 4 years ago when Covid halted the states “quickie wedding” industry. That worked out to an average of 265 marriages per day, a post-pandemic record. Can’t help falling in love While it’s taken time to bounce back fully, the waking-up-in-Vegas approach could be increasingly attractive as “speedy” and, crucially, “cheap” have become ever-more desirable requisites for those planning ceremonies — with Forbes [reporting]( that the average wedding in the US now costs $33K. That’s $4K higher than the year before. Chapel packages, like those at the famous A Little White Wedding Chapel, start from as little as $80 for a “[Drive Thru Tunnel of Love Ceremony](”... although they can hit as much as $495 for a full “[Elvis Tribute](” wedding. Although inexpensive by wedding standards, all of those ceremonies soon add up: wedding-related tourism in Las Vegas [accounted]( for some $2.5 billion in spending in 2022, supporting 18,000 jobs in Sin City. As well as saving considerable costs and hassle, many are also drawn to the cultural cliché of the Vegas wedding, made famous by the likes of Frank Sinatra and Britney Spears. In fact, [Bumble]( recently offered 50 free weddings in Las Vegas to US couples who’d met on the app for its 10-year anniversary, and a new Friends experience at the MGM Grand will allow fans to recreate the iconic “[The One in Vegas](” drunken chapel scene. [Read this on the web instead](   [Sponsored by Aura]( This $100B Untapped Market Is Transforming Mental health is a massively untapped $100B opportunity in an estimated $5.6T global wellness market. And it’s only getting bigger—rapidly. That’s why brothers Steve and Daniel Lee started [Aura Health](. Their last investment round sold quickly, prompting them to extend the investment opportunity only 6 more days. Why shares sold out so fast: 👏 Aura’s 8M+ users & 100K+ paying subscribers are just the beginning. The company is set for an [international expansion]( by launching in 6 new languages. 💼 Their 3,000+ investors include top Silicon Valley VCs and executives from Spotify, Meta, and Apple. 💪 The $100B mental wellness industry needs a library of wellness resources, and the [rise of AI]( will help Aura meet demand even further. The opportunity ends in less than a week and shares are limited. [Discover more about investing in Aura today.*](   The charging horse As arguably the most iconic luxury car company in the world, Ferrari’s foray into the world of electric supercars has been keenly anticipated. It’s also been highly secretive. But, some details did emerge this week from [Reuters]( that Ferrari’s first electric effort will start at a hefty €500,000 ($535,000) — well above the company’s current average selling price of ~€350,000. The first Prancing Horse EV is expected in late 2025 and a second model is already in development. For Ferrari, whose brand depends so greatly on the “noise factor” of its highly-romanticized cars, the move to quiet electric is potentially more risky than it is for other brands. Unlike mass-market automakers, Ferrari's margins rival luxury titans like LVMH and Hermès, having posted a 27% operating profit margin last year. In contrast, VW and Mitsubishi hover around a 7% margin, Ford is close to 3%, and even rival Porsche only [aims]( for 20%. At the rumored price tags, those margins seem likely to stay intact — the challenge will be in scaling production. Ferrari delivered only ~14,000 cars in 2023, but it has plans to ramp capacity up to as much as 20,000 a year to accommodate the new EV models. While selling cars and parts is its main business, Ferrari also made $600M+ in sponsorship, commercial, and branding revenue last year bolstered by a strong Formula 1 performance. [Read this on the web instead](   More Data - The Voyager 1 space probe is [up and running]( again after NASA fixed a technical glitch from 15 billion miles away. - Ralph Lauren just unveiled Team USA’s olympic and paralympic uniforms — it's the 9th time the brand has served as the nation’s [official outfitter](. - A recent grad and TikTok creator has just been named as John Deere’s first [Chief Tractor Officer](. - Sweet deal: British sugar giant Tate & Lyle has acquired an ingredients maker for [$1.8 billion](. - Another one bites the dust: Queen are the latest in a growing line of artists selling their back catalogs, with Sony finalizing [a deal]( to snap up the songbook for $1.3 billion. Aura is becoming a [leader in the mental wellness space](: 8M users, $25M in lifetime revenue, and 3000+ investors including execs from the likes of Spotify, Meta and Apple. You have 6 days left to join them — [discover Aura’s limited investment offering here](.* Ad   Hi-Viz - Charting the rise of America’s “[super commuters](”. - Great Pudding piece on how your city will feel in [the future](. Off the charts: Which beloved casual dining chain just notched its second consecutive [quarter]( of declining sales? [Answer here.](   Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi, I like the newsletters, but I had a thought for you...) or want to [sponsor this newsletter](mailto:advertising@sherwoodmedia.com?subject=I’m interested in advertising with Sherwood Media)?   Not a subscriber? Sign up for free below. [Subscribe](   Advertiser’s disclosures: This is a paid advertisement for Aura Health’s Regulation CF Offering. Please read the offering circular at [invest.aurahealth.io](. Start-up investments are speculative and involve a high degree of risk. Those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investment tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Further, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. DealMaker Securities LLC, a registered broker-dealer, and member of FINRA | SIPC, located at 105 Maxess Road, Suite 124, Melville, NY 11747, is the Intermediary for this offering and is not an affiliate of or connected with the Issuer. 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