Los Angeles: In 2019, I wondered if we’d hit peak supercar. Boy, was I wrong.
As I look back on the past 12 months in the automotive world, the Year of the Supercar could rightfully be considered 2025, since it now seems there may be no limit to the number of cars Bugatti, Pagani, Koenigsegg, Lamborghini and Ferrari could sell this year. While onerous tariffs, slow electric vehicle sales and increasing competition from Chinese brands have many legacy automakers on the ropes, those fancy brands are reporting plump profits and stacked order books with waits that can extend beyond a year.
Luxury cars in general played heavily in 2025. The average price of a new car in the segment reached record heights — above $50,000 — in the US as demand for such vehicles continues to grow. Manual transmissions powered by internal combustion saw high appeal among wealthy consumers. The most coveted models were customized to reflect the personality of their owner.
Meanwhile, global sales of EVs continued to increase, but in many markets they didn’t do so as quickly as expected. At Audi, Ford, General Motors and Volvo, among others, EVs fell victim to competition from China’s well-made and affordable EV offerings; to the end of rebates and subsidies that had propped up sales; and to general politicization that made them a hot-button discussion point in many households.
Those That Struggled
Tesla Inc. tumbled in 2025, facing steep declines in sales and profits globally, as well as losing market share in the US. It took heat from multiple lawsuits regarding doors that critics say failed to open during fatal accidents and backlash from protesters raging against co-founder and CEO Elon Musk, including at its new diner in Hollywood. Many Tesla owners in Los Angeles have donned “I bought this before we knew Elon was crazy” bumper stickers on their cars and SUVs.
Lucid Group Inc. suffered, too, from supply-chain weaknesses that had it bleeding cash.
But Porsche had arguably the biggest fall from grace in 2025, due largely to deep-rooted financial woes and failure of its EVs to win over consumers — and this slide despite intense marketing campaigns that had celebrities from Dua Lipa to Orlando Bloom shilling for the brand. In September, Germany’s benchmark stock index ejected Porsche after it had lowered its outlook three times since January. (Limited demand for the electric Taycans and Macans and weaker-than-expected sales in China had damaged it most.) At the time of its 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, taking a €3.1 billion ($3.6 billion) hit. The brand has plummeted from being compared favorably to Ferrari to the company warning that it will barely make a profit this year.
More critically, longtime customers of Porsche — among the most loyal and vociferous of car buyers — have taken to social media to bemoan the high prices of its most expensive models and its descent into digital rather than analog cabin components. Following a shuffle of other top executives, Porsche AG Chief Executive Officer Oliver Blume will soon be relieved of his double duty leading both Volkswagen Group and Porsche. The new guy, Michael Leiters, assumes the role of CEO of Porsche on Jan. 1, leaving Blume to head of Volkswagen.
Those That Soared
Porsche offers a stark contrast to the brand that looks the strongest coming out of 2025: Ferrari. The company has maintained huge profit margins and has order books full until 2027, placing it far above struggling luxury rivals like Aston Martin, which cut delivery targets earlier this year.
One reason Europe’s most valuable automaker has succeeded is that it’s not as vulnerable in the Chinese market as other luxury carmakers: The country accounts for less than 10% of the company’s sales. Plus, Ferrari benefitted from its decision to stall its march toward electrification. In October, executives said that by 2030, just 20% of new Ferraris sold would be electric, compared with a previous target of 40%. The adjustment will likely help protect the brand’s residual values, unlike those tormenting the Taycan.
Not everything has been smooth sailing for the Italian automaker. In October it had to adjust earnings expectations. Its cars cost more than ever and are disproportionately expensive compared with the rest of the auto market, which analysts say could alienate even loyal customers. The average price of a vehicle from Porsche AG is $115,407, the highest of any standard-production automaker. A Ferrari, on average, costs four times that amount. And the arrival of its first EV, the Elettrica, in 2026 is a risk when most buyers in this echelon aren’t buying electric.
Still, Ferrari fans are staunch. More than 80% of the vehicles it sells go to existing clients, and I’m already hearing eager anticipation for the beautiful Amalfi. I predict this brand will keep its throne for the foreseeable future.
Brands to Watch
As for next year, I’ve got my eye on Audi and Cadillac.
They will each join Formula One in 2026, with Audi taking over Sauber and Cadillac entering as the sport’s new 11th team. (Ford will return to F1, though to a lesser extent, by providing power units for Oracle Red Bull Racing and Scuderia AlphaTauri teams.) This is especially exciting for Cadillac as it works to shed all remnants of its fuddy-duddy image. It needs to make more cars that can authentically compete with the likes of legacy automakers BMW, Mercedes-Benz and Porsche.
The value of joining F1 goes far beyond than that old chestnut “Race on Sunday, sell on Monday,” although that still holds true to some extent. F1 can help Cadillac’s brand evolution because it’s finally considered a mainstream cultural event in the US. (The average race audience of 1.3 million US viewers across ESPN and ABC this season was the highest live telecast average in F1 history, breaking the record of 1.2 million set in 2022 and up 147% since 2017, according to ESPN.) Brands from LVMH to Hello Kitty are investing millions of dollars just to be associated with the series: F1 is good for marketing, it’s good for developing new technology, and it’s thrilling social media content.
Cadillac’s driver selection of Valtteri Bottas and Sergio Perez is particularly smart. Both are charismatic fan favorites who will give us something fun to watch, even if the team doesn’t score many points in its first outing on the grid. (Ferrari will make the engines for Cadillac until the American team starts to make 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 quiet. While its F1 drivers, Nico Hülkenberg and Gabriel Bortoleto, may have less on-screen personality than the mustachioed Bottas, Audi has extensive and successful racing history that goes back more than a century. I predict it will finish higher in the pack at first than its Detroit rival.
Plus, Audi is already generating excitement for some new cars in 2026. In September in Milan, the brand unveiled a sleek two-seater concept car, a preview CEO Gernot Döllner says is the blueprint for Audi moving forward. I take that as very good news indeed, since the Concept C has an elegant, ultramodern interior and just enough detail to recall great Audis of the past, like the Audi TT and Audi R8.
With products like that on the horizon, the theme of high-end luxury sports cars looks like it will continue unabated into 2026 and beyond.
(Reporting by Hannah Elliott)
Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.
Also Read: I’ve been driving an EV for 2 years—Indian roads are ready to switch to electric