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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.

Fiat Chrysler denies rumors that Ferrari SpA is moving to London

It seems that reports of Ferrari's relocation to London have been somewhat exaggerated. The past few days have seen more than a few stories on the legendary Italian brand's decision to move its tax base out of Italy, and now Fiat Chrysler is speaking out against the scuttlebutt. "These rumors have no grounds," FCA said in a statement obtained by Reuters. "There is no intention to move the tax residence of Ferrari SpA outside Italy, nor is there any project to delocalize its Italian operations, which will continue to be subject to Italian tax jurisdiction." Ferrari's move to London was based on two beliefs. First, that the company would benefit from being located nearer the investor community, should it be listed on a European exchange. FCA, though, said a European listing was only a "possibility," according to Reuters. Instead, the company will be listed on an American market. Aside from the move to benefit investors, it was believed Ferrari was looking to relocate to escape Italy's more oppressive corporate tax rate, which sits around at 31.4 percent, compared to the UK's 20 percent, Bloomberg reports. This denial by Fiat Chrysler, though, should be enough to close the book on Ferrari leaving Italy, no matter how much sense it might make. Related Video:

Romania's Forza Rossa to join 2016 F1 grid

Bazac's Maranello ties have prompted speculation that Forza Rossa could be as closely affiliated with Ferrari as Hass. Formula One may be in a bit of a crisis at the moment, with two of its smaller teams collapsing into bankruptcy, but there may yet be light at the end of the proverbial tunnel as two new teams are gearing up to take their place. One of those teams is Forza Rossa, and while we haven't much anything about the Romanian entry in in recent months, a new report from Pitpass indicates that plans are well under way – if not without their complications. Forza Rossa is being backed by a number of Romanian parties, including veteran race strategist Colin Kolles (who was most recently involved in the Caterham buyout) and Ion Bazac, former government minister and Ferrari's Romanian importer (pictured above next to Giancarlo Fisichella). Interestingly, the latter's ties to Maranello have prompted speculation that the team could be at least as closely affiliated with Ferrari as Haas (the American team being started by industrial machinery magnate and NASCAR team owner Gene Haas). A third Romanian individual – former soccer player Constantin Cojocar – turns out to have been the one who bought Caterham Sports Ltd, the company which designed and built the cars for the Caterham F1 Team until its recent collapse. The plan was to supply chassis and components to both Caterham and Forza Rossa, but Cojocar evidently had trouble paying the bills and keeping the lights on. Caterham's bankruptcy, however, could present a golden opportunity for Forza Rossa to scoop up the assets of both the team and the manufacturer at a good price, building the new team on the burnt foundations of the old one – even if it has already been granted the go-ahead by the FIA to form its own entry. That, however, won't happen until 2016 at the earliest, whittling down the grid in the meantime from 22 cars to 18. According to the arrangement between the FIA, Formula One Management and the teams, that threshold would oblige at least the leading teams to make up the lost places on the grid by fielding a third car each – something they couldn't prepare in time for US Grand Prix this past weekend, but which could be put into action for next season.