What is the appeal of luxury vehicles?

The appeal of luxury vehicles, particularly brands like Ferrari and Tesla, seems to stem from several factors.

1. Exclusivity and Craftsmanship: Ferrari, for example, handmakes their cars and sells a limited number each year (around 13,000), which adds to their exclusivity and appeal 1.

2. Profit Margins: Luxury brands like Ferrari maintain high profit margins despite low sales volumes. This indicates the premium pricing these vehicles command, which adds to their perceived value and status 1.

3. Advanced Features and Performance: Brands like Tesla focus on high profit margins through advanced manufacturing and technology integration. Tesla's cars, although mass-produced, maintain a high-margin due to these technological advancements, appealing to those who value innovation and cutting-edge features 1.

In summary, luxury vehicles attract buyers through a combination of exclusivity, superior craftsmanship, advanced features, and the status they confer.