A Car That Costs as Much as a House Is the Latest ‘Dream’ of America’s Upper Middle Class

When Lamborghini announced its end-of-an-era Huracán Super Trofeo Jota last April, in an edition of just 10, it sold out immediately. No price was announced, though it was probably above US$400,000. That hardly deterred buyers eager to own one of the last Huracán supercars.

Ferrari’s limited-edition 812 Competizione and 812 Competizione A in 2021? The 999 hardtops (US$598,567) and 599 targas (US$694,549) were gone very quickly, though maybe not in 60 seconds.

Meanwhile, the Rolls-Royce Black Badge Cullinan “Blue Shadow Private Collection” cars that appeared in 2023, just 62 in number, disappeared within two weeks. Black Badge Series II Cullinans start at US$470,000 for 2025, but these special editions are pricier—more than US$600,000.

“The primary driver for Rolls-Royce Cullinan clients is not price, but a combination of lifestyle and personalised exclusivity,” says Martin Fritsches, president and CEO of Rolls-Royce Motor Cars North America.

The global supercar market was US$17.5 billion in 2023, reports MarketResearch.biz, but it could soar to US$24.9 billion by 2033. Supercars, Business Research Insights says, “are a symbol of luxury, performance and status, appealing to affluent buyers who seek exclusivity and the thrill of driving a high-powered machine. … With a growing global economy and increasing wealth, the demand for supercars continues to rise.”

In the U.S., the American International Automobile Dealers Association reported that luxury brand deliveries in 2023 were more than 2.6 million, accounting for 17% of U.S. light-vehicle sales. That was up from 2.2 million sales in 2021 (and a 14.7% share).

Supercar sales represent small totals, but big potential profits. It’s a niche with an increasing number of startups, including battery cars from companies such as Lucid and Rimac. Ferrari, for instance, reported a US$1.36 billion profit in 2023, a yearly record. That’s despite producing only 13,221 units in the year. Ferrari has typically produced between 8,000 and 11,000 cars annually, but it’s one of the world’s most written-about, admired, and sought-after brands.

And Lamborghini had its best year in 2023, with an operating profit of US$777 million. That’s on sales of 10,100 globally. But each sale was a big ticket: The Huracán buyer in 2023 paid between US$212,090 and US$340,690. Volume didn’t help Tesla all that much. The company sold 1.8 million vehicles globally in 2023 (and had the world’s best-selling car in the Model Y), but has been experiencing declining profits.

This year, the supercar and luxury carmakers are revelling in the power of special editions and the one-of-one “bespoke” commission. Without having to make major changes to their existing models, the companies are able to greatly increase the price—via distinctive colours, interior appointments, and personalisation. Perhaps Tesla would do better if it too delved deeper into accommodating its eager customers with vast personalisation possibilities. Who wouldn’t want a one-of-10 SpaceX Edition of the Model Y?

Meanwhile, established supercar makers are rapidly transitioning to electric and hybrid drive, motivated by international regulations that will ban internal-combustion engines by 2035. Maserati, for instance, is introducing electric “Folgore” versions of its GranCabrio convertible this year, and MC20 supercar in 2025. There will be a new electric SUV in 2027 and a four-door battery Quattroporte in 2028. Electrification is not likely to lead to either lower prices or lower demand, but there’s no certainty.

The Collector Market Is Cruising, Too

The market for collector vehicles above US$200,000 also remains quite healthy. The US$143 million paid for the 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupe in 2022 surpassed the results of any other car sold at auction by more than US$90 million.

This 1955 Mercedes-Benz coupe broke records when it sold for $142m in 2022

Critics who said that high-dollar buyers would never buy US$200,000-plus cars online (without seeing them in person) have been proven dramatically wrong, and the increase in online buying on sites like Bring a Trailer (BaT) and Cars & Bids has stoked rising values.

“March 2024 was the largest-volume month in our Premium Listings category since we launched it in 2019,” says Randy Nonnenberg, president and co-founder of BaT. “April 2024 followed on with 64 vehicles selling at over US$200,000 in value, with the top sale a Bugatti Chiron at US$3.075 million.”

Offerings in that price range from a US$250,000 1932 Ford hot rod coupe and a Lexus LFA to modern Ferraris and Ford GTs, Nonnenberg says. “The low transaction fees of our online platform make it very attractive for buyers of these expensive items when compared to other venues.”

Pre-owned supercars (and adjacent American muscle) often appreciate in the marketplace, with the rare (and most powerful) ones commanding huge prices.

“The strong US$3.5 million paid at our Amelia Island auction in March 2024 for a Porsche 918 Spyder Weissach—as well as many other strong prices for contemporary supercars—demonstrates the strength in this segment,” says David Gooding , president of the Gooding and Company international auction house. Seven cars priced at more than US$10 million were offered at auction last year, reports Hagerty, with as many as 10 expected in 2024.

McKeel Hagerty , CEO and chairman at Hagerty, says the US$200,000 price point is an interesting one in the enthusiast car market.

“With a budget like that, you can buy some fantastic classics with a rich history, late-model supercars, or you can build a wide variety of the latest restomods [older cars restored with modern amenities],” Hagerty says. “These are the dream cars of the American upper-middle class.”

Hagerty says that US$200,000 would buy “a great, early Porsche 911 S or Jaguar Series 1 E-Type Roadster.” A supercar car lover might also find a Lamborghini Huracán or Ferrari 458 with “weapons-grade performance” in the price range, or a Plymouth Superbird and ‘66 Mustang GT350, he adds.

A rare 2015 Porsche 918 Spyder Weissach supercar

Despite the demand, Brian Rabold, vice president at Hagerty Automotive Intelligence, says that high-priced cars don’t necessarily appreciate as fast as some others when they age.

“In the past five years, the 87 vehicle generations in the Hagerty Price Guide with an average value between US$200,000 and US$500,000 have seen an average value growth of 9.24%. This lags behind the 35% average value growth seen in the remaining 1,351 vehicle generations,” Rabold says.

Nevertheless, he says the future “looks bright” for the US$200,000 to US$500,000 segment. “These vehicles are becoming more popular among collectors. Surprisingly, Baby Boomers (who hold most of the wealth in the country) are not driving this growth.” Hagerty is seeing more queries from Gen-X.

“Owning a desirable car or truck that you can drive, or show is much more fun than storing your stock certificates in a safe,” says Craig Jackson , chairman and CEO of the Barrett-Jackson auction house. “Plus, it can offer a long-term upside if you research before you buy.”

Ben Broca launched a company last December that offers AI tools to entrepreneurs. He’s already added 10,000 paying customers and is on track to bring in $10 million in revenue this year.

One thing he hasn’t added: any other employees.

The 40-year-old is part of a class of entrepreneurs who are launching, and then often running, new companies on their own. Artificial intelligence tools answer Broca’s emails, help write and debug code, field requests from customers, sign up new subscribers and grant refunds when issues arise.

Broca relishes his ability to make whatever decisions he wants on his own, often from his sun-drenched Sausalito, Calif., living room. “I think compromises make lukewarm results,” he said.

Once upon a time, running a business of a certain size required a team. AI is turning that assumption upside down, and more aspiring entrepreneurs are going it alone.

Ben Broca sitting in his home office. — Tech has seen an explosion of solo founders in the past year. Broca said he likes being able to work at his own speed, unencumbered by a team. Jonah Reenders for WSJ

An analysis by the payments company Stripe shows there are thousands of solo operators on the company’s platform that are generating over $1 million in revenue, with their ranks doubling between 2023 and 2025. The number of solo operators crossing the $10 million threshold nearly tripled in that same span.

In the past, people without business contacts or particular savvy might not have known how to get their ideas off the ground, said Ernie Tedeschi, Stripe’s chief economist. “Now, AI can be a built-in business partner,” he said.

AI’s ability to handle various administrative tasks makes it potentially useful for launching solo businesses in many fields. But the technology’s ability to also handle key tasks in tech, like coding, make that field a particular hot spot.

Analyzing Census Bureau data, Bank of America Institute economist Taylor Bowley found that among all industries, new business applications in the information sector have seen the biggest percentage increase—nearly 45%—over the past year. At the same time, the rate of information-sector applicants saying they plan to hire workers has experienced the sharpest decline of any measured industry.

This Census dataset doesn’t track solo-operated businesses. But the numbers broadly show—in tech and beyond—that applications are flat among businesses likely to hire workers, but generally rising elsewhere. Economists say that’s a strong sign that solo operators are on the upswing.

“The bar for getting started has never been lower,” said Julian Weisser, who runs a San Francisco-based accelerator for solo founders working in tech. The accelerator—which offers founders seed money and mentorship in exchange for an equity stake—attracted 4,500 applicants for 10 slots made available in its most recent cycle, nearly five times the number it drew when it launched last May.

Going it alone with AI can still be surprisingly expensive. Broca said he was losing money on many customers’ accounts while paying to access Anthropic’s Claude to run his clients’ requests—that AI company, as well as others, charges based on usage. He has since switched to free open-source AI models from China.

Broca said he has raised $30 million from investors and, at the same time, has saved millions in salary since he hasn’t needed a team of software engineers.

Another risk: If it’s easy for one entrepreneur to launch an AI-assisted business, copying them can be easy, too. This creates anxiety for founders like Troy Johnston, who runs an AI-assisted business alone in Orlando, Fla.

“Everybody has the sword and we all have the ability to unsheathe Excalibur now,” said Johnston, 40, who used AI to code an app that helps people get the most out of credit card benefits. The company makes around $3,000 a month in profit, with no employees, and is continuing to grow.

Troy Johnston said AI’s power and ease of use is an incredible boon for entrepreneurs like him—and also a double-edged sword. Luann Koerper

What one-person businesses will mean for the labor market remains to be seen. Polling has shown Americans are worried that AI will replace jobs, and top economists are wrestling with that possibility, too. But AI is also creating lots of new jobs, and the go-it-alone entrepreneurs show how the technology can both open doors and limit employment opportunities.

“If everyone’s hiring less, but you get four times more firms, what does that do to head count?” said Rembrand Koning, an associate professor at Harvard Business School who studies entrepreneurship. He co-authored a recent study that found that among 50,000 startups the researchers examined, those focused on AI tended to operate with 25% fewer employees.

Koning also believes a soft hiring environment that’s left some people mired in long job searches has encouraged more to try their hand at launching businesses.

Some founders cite different motives. “It’s a perfect storm of post-pandemic burnout and a re-evaluation of one’s priorities, and also booming AI and a sense of what’s possible,” said Samir Ahmad, 39, who lives in Breinigsville, Pa.

Two years ago, Ahmad decided to leave the corporate job he had worked at Verizon for almost two decades to start a solo coaching and consulting business. He had been seeing social-media posts touting the ease and virtues of AI, which he used to chart a business plan and help with marketing. “It was like my chief of staff, a second in command,” he said.

The business ultimately petered out within months, though, and Ahmad is now back to a full-time corporate role with a utility company.

For Claire Vo, 41, AI helped her turn a passing impulse into a business. She was working full-time as a tech executive when she tapped AI in late 2023 to help code an app that would help her manage documentation and design for new products, with customers ranging from financial services to healthcare firms.

“I was copying and pasting from ChatGPT,” said Vo, who lives in San Francisco.

Claire Vo smiling into the camera while recording a podcast. — Claire Vo used AI to code an app that’s on track to make seven figures in profit this year. Claire Vo

She put the app online for $1 a month, and within weeks people downloaded it thousands of times. Nearly three years later, Vo’s company—which she ran solo for nine months before hiring an engineer—now has 100,000 users and is on track to make seven figures in profit this year. AI handles the company’s marketing, sales and customer support.

While AI is a shortcut, Vo said her network and credibility in the industry were key. “I think people over-index on how easy AI is and under-index on how much I did to get to this point,” she said.