Lamborghini Builds $741,000 Car No One Asked For

Lamborghini unveiled the Revuelto SV. It has over 1,050 horsepower. It costs $741,172. It accelerates to 100 kph in 2.4 seconds.

The company calls it their most powerful production car ever. They're limiting production because scarcity creates demand when your product serves no purpose. The V12 hybrid exists so wealthy people can tell other wealthy people they own a V12 hybrid. That's the entire business model.

Here's what 1,050 horsepower gets you: the ability to reach illegal speeds in 2.4 seconds on public roads where the speed limit is 65. You're paying three-quarters of a million dollars for a machine optimized to break the law faster than any Lamborghini before it. The engineering is impressive. The use case is prison.

Retail traders will see this headline and think it means something about luxury goods demand or high-net-worth consumer spending. They'll check the stock price. They'll look for correlation. They'll draw a trendline on a chart and convince themselves this news contains actionable information.

It doesn't. A car company made a faster car. This happens every year. Sometimes twice a year. The pattern is undefeated. Next year they'll unveil one with 1,100 horsepower and charge $820,000 and the cycle continues until physics or climate regulation intervenes.

The Revuelto SV will sell out immediately to people who already own six cars. None of them will drive it more than 300 miles per year. Most will keep it in a climate-controlled garage next to the other purchases they made to feel something.

But sure, buy calls on luxury stocks because a supercar got 50 more horsepower than the last supercar.

Photo by David von Diemar on Unsplash