Should I race to buy Aston Martin stock after Fernando Alonso’s glorious F1 podium?

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Fernando Alonso’s podium at the recent Bahrain F1 race aston martin (LSE: AML) share the boost.

After being fastest in practice, Alonso overtook seven-time world champion Lewis Hamilton during the race.

Critics even claim that Aston Martin can challenge championship contenders Red Bull. Ferrari This season.

This recent success has impacted the brand’s stock price. It has nearly doubled so far this year, and experts predict the podium could have added $400 million to the company’s value. .

If anything else, will this season be a good one for Aston Martin and its shareholders?

Aston Martin – Beyond Bond

It will undoubtedly be an exciting new chapter for the Aston Martin brand, reaching out to a new generation of fans. To date, the 110-year-old automaker has james bondespecially its historic model.

But being in F1 keeps you up to date. Over 60% of his customers are new to the brand, in part through their racing strategy. His F1 fan base totals 150 million. Importantly, test drives are up more than 60% of his in major markets.

Last year, Aston Martin’s revenue increased by 26%, with an average selling price of over £200,000. Many of its models are sold out in 2023.

After selling about 6,400 units in 2022, we aim to sell 7,000 units this year and 10,000 in the long term.

All of this seems like a winning proposition, essential to ensuring continued investment in model updates, marketing, and new launches.

price of success

But winning costs money. So does keeping up with the rapidly changing automotive market.

£1.4 billion in 2022 revenue eaten up by production costs, investment, overhead and interest. This cost him £527m in business for the full year. This equates to nearly triple what he will be in 2021.

Electrification will also be on the agenda as Aston Martin ushers in petrol enthusiasts into its new high-performance portfolio as the world switches cars to fuel.

Valhalla, the company’s first plug-in hybrid, will start delivering in 2024, with the first fully electric model coming in 2025.

Many countries plan to ban the sale of new fossil fuel-powered vehicles by 2035.

age and experience

There’s also the unpredictable nature of F1 to consider. The leaders could fall behind in some races, like the blistering pace of development during the season. Additionally, star his driver Fernando Alonso is the oldest on the grid at 41 years old. In such a demanding sport, this is beyond his retirement age.

His extensive experience has been a key factor in the team’s success. He is a two-time world champion since his days racing for Renault. He also won the 24 Hours of Le Mans twice. He has hundreds of podiums, pole positions and fastest laps.

These are big shoes to fill for teammate Lance Stroll, son of an F1 team owner, when the time comes.

Aston Martin continues its exciting and innovative journey. But as a long-term investor, given the risks, I’m willing to sit on the sidelines and invest elsewhere. I still follow F1 teams. And if my portfolio pays off in the long run, I hope he can invest in one of the great road cars in the future.

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