Ferraris

Gov. Gavin Newsom last week signed legislation cracking down on the practice of luxury-car buyers in California registering cars out of state to avoid taxes.

Senate Bill 1406, introduced by state Sen. Jerry McNerney (D-Pleasanton), closes the so-called Montana loophole, in which tax evaders create shell companies in Montana or other states without sales tax or vehicle registration fees and use them to purchase Ferraris, Porsches and other luxury cars. The state estimate it loses millions of dollars annually because of such schemes.

The new law expands California’s definition of who is a resident under state sales tax law in an effort to weed out phony shell companies, making a company liable for state taxes when at least one member of the business is a California resident.

The law, which went into effect immediately, also authorizes the state tax agency to impose tax liability on individual members of a business.

California had already looked to enforcement efforts to investigate suspicious out-of-state car sales, which officials estimate amount to $10 million annually in lost tax revenue.

Under state law, residents were already required to pay California sales tax on vehicles unless they are first used out of state and stay out of state for at least 12 months. Dealers are required to maintain records showing sales of vehicles so that authorities can ensure vehicles sold to buyers in another state are actually delivered there.

Earlier this year, the state’s Department of Justice charged 14 people — including auto dealers and customers purchasing cars — with concealing the purchase of more than $20 million worth of high-end vehicles including Ferraris, Porsches and Lamborghinis, and evading upward of $1.8 million in state taxes.

Text messages included in the criminal complaint showed buyers seeking to conceal their purchases. One Lamborghini buyer boasted about fees avoided: “70k saved — I can’t believe Montana registration lasts for 5 years — that’s crazy. Stupid California. Paid 3k to own a 600k car for 5 years — lol in Cali that’s like 75k for 5 years. Hella dumb.”

The new law further develops criteria to help show an LLC as a shell company involved in a potential tax evasion scheme.

If the LLC lacks a specific business activity or purpose, fails to maintain a physical location outside California, fails to employ people, or fails to file federal tax returns in another state, it could now be considered as evidence of such a scheme.

Christian Horner is proving a distraction for Ferrari by “looking for a job”, team principal Frederic Vasseur says.

Horner, dismissed as Red Bull team principal in July 2025, used an interview with the Times this week to say that Ferrari are the only Formula 1 team he would work for without being given a shareholding, describing it as “the dream”, external.

Vasseur outlined his frustration with Horner following Saturday’s Azerbaijan Grand Prix – at which Charles Leclerc finished fourth and his Ferrari team-mate Lewis Hamilton was sixth.

He said: “We are not working in the perfect serenity.

“For me, first, but for everybody in the team, for the media, for 50% of the questions [to be] about this, it’s a bit of a frustrating situation.

“We are fighting for P3 [third place] in the championship, and at the end of the day, we are all speaking a lot about this, and even for the guys in the garage, to discuss about this, it’s the best discussion that we can have.

“But it is what it is, it’s not in my hands. Mr Horner is looking for a job – that everybody knows – everywhere. But what can I do? Just try to do my best to push the team, to rise them to be motivated, focus on what is better today.”

Vasseur was asked whether he was joking about Horner, and replied: “I was very serious.”

And asked whether he would consider working with Horner, he replied: “This you have to ask my assistant.”

That remark appears to be a reference to the circumstances surrounding Horner’s departure from Red Bull in July 2025.

Horner was accused of sexual harassment and coercive, controlling behaviour by a female employee. The allegation became public in February 2024 but the accusations were dismissed by Red Bull following two internal investigations.

Horner was fired from his role as chief executive officer and team principal by Red Bull after the 2025 British Grand Prix.

That decision followed a tumultuous 18 months in the wake of the employee’s allegations, during which a number of senior team figures left – including chief technical officer Adrian Newey – and there was a slump in form.

Red Bull have never given a public explanation for Horner’s dismissal. The two parties agreed on a settlement said by sources to be worth 60m euros (£51.5m).

Ferrari entered this season hoping to be title contenders following the introduction of new chassis and engine rules in F1.

But while their car was acknowledged as the best in the corners as the season began, their engine has lacked performance compared to those of Mercedes and Red Bull.

This lack of power was exposed on the long straights of the Baku circuit, as Leclerc slipped back in the race after qualifying second.

Vasseur said on Saturday: “With the situation that we are in the engine, we are losing one position per lap, and then we lose the path of the race.

“Honestly we were surprised to be in the first row, because Baku is the most demanding in terms of engine, and was not expecting to do so. But we knew even starting from the first row that the opening laps, or in case of restarting safety car and so, it would be difficult. And it was.”

Asked whether he was still committed to his position at Ferrari, Vasseur said: “Motorsport is my life, it’s my business. I’m trying to do my best. I’m there to do my job. I have the best job in the world, heh. But, it is like it is. We have still seven races to go, and I will push until the last corner.”

Ferrari have not won a world championship since 2008, and have rarely had a fully competitive car since then.

Horner said in his interview: “Would I consider Ferrari? I mean, Ferrari is the biggest brand in Formula 1. It’s the dream. And arguably it’s the sleeping giant of Formula 1.”