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Ferrari, not Tesla, might be the stock to buy

Last week Tesla's earnings – or lack thereof – were one of the big stories in the auto industry. As usual, the electric carmaker didn't make money, but the news sent the market, analysts, and Tesla's devoted fans into a lather. But another company, this plucky upstart called Ferrari, also attracted a positive reaction from the market and actually had the financials to back it up. Ferrari posted net revenues of $898 million (at today's exchange rates) EBITDA of $265 million (a slightly complicated way to snapshot financial performance) and an adjusted net profit of $136 million in the first quarter. The company delivered 2,003 cars, and sales of its V12 models increased 50 percent. It quietly made progress nearly a year and a half into its life as an independent automaker. For 2017, Ferrari expects to deliver 8,400 cars and rake in net revenue of $3.6 billion. No one thought Ferrari would flounder when Fiat Chrysler Automobiles spun it off in fall 2015. With a rich history, expensive products, and its own loyal fan base that's arguably even larger than Tesla's, the company seemed poised for success, though skeptics wondered how it might fare after longtime chief Luca di Montezemolo stepped down before the spinoff. Plus, the company remains within the FCA sphere, as its key stakeholders are largely connected to its former parent in some way, and Chairman Sergio Marchionne also steers FCA. Last week's results showed Ferrari is gaining footing in the evolving automotive world, and analysts responded. UBS analyst Michael Binetti reiterated Ferrari stock (RACE on the NYSE) as buy status and raised his target price from $85 to $92. Morgan Stanley's Adam Jonas was even more bullish, raising projections to $100 in the next 12 months. Shares were trading around $82 Monday morning. Both analysts viewed Ferrari as something different than a conventional automaker stock, with Binetti comparing it to luxury house Hermes, which produces high margins even for a specialty goods maker. Jonas suggested Ferrari's singular reputation and history (16 Formula One Constructors titles, the most ever) could insulate its products when autonomous and electric cars become even more commonplace. "In our view, a Ferrari is not transportation," he wrote in a note to clients. "Ownership is viewed as an exclusive club, and membership requires more than just money.

The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.

Mercedes-Benz EQC vs. Jaguar I-Pace vs. Tesla Model X: How they compare on paper

The Mercedes-Benz EQ line is officially alive and kicking, with the reveal of the EQC electric crossover. It joins a segment that, while still in its infancy, seems ready to take off. Mercedes lists as the EQC's competitors the Jaguar I-Pace, The Audi E-Tron Quattro and the BMW iX3. While we've seen all of these, at least in concept or pre-production form, only one — the Jag — has actually been launched in production form. We've seen a concept and subsequent spy shots of the iX3, and the Audi EV will get its official specs publicized later this month. One electric SUV Mercedes didn't specifically call out was the Tesla Model X. As such, we've decided to compare on paper the Mercedes-Benz EQC 400, the Jaguar I-Pace S and the Tesla Model X 75D: All three are dual-motor EVs, though the Tesla is the longest and tallest. The EQC has the most power, but it and the Model X's 4.9-second 0-60 times fall short of the I-Pace. It also has the lowest top speed and electric driving range. (Mercedes sent us an updated range figure, but it's using the generous and largely outdated NEDC cycle; we're still waiting on an EPA rating.) We'll be interested to see how much the Mercedes weighs. Mercedes hasn't divulged the price of the EQC yet, but we imagine it'll fall pretty near to the $70,000 mark. As for Audi, we'll revisit this comparison after those details are made available on September 17. If you're interested in some other EV comparisons, we have a couple others that we published to compare the I-Pace to premium Teslas, as well as against other less-expensive EVs. If you want to learn more about these EVs, and compare them with other cars, be sure to check out our Car Finder and comparison tools. Related Video: Featured Gallery Mercedes-Benz EQC 400 EV Crossover View 28 Photos Green Jaguar Mercedes-Benz Tesla Crossover SUV Electric Luxury Comparison jaguar i-pace mercedes-benz eqc