Build Your Own Rolls-Royce: Inside the Arcadia Droptail Roadster, the Latest From the Company’s Coachbuild Operation

Rolls-Royce’s Bespoke division is exclusivity personified, and the highest rung in that ladder is Coachbuild—which goes far beyond selecting unique colours or interior finishes and gives customers the chance to help design their own new cars.

The first of the Coachbuild cars was the Phantom-based Sweptail, hand-built over four years, reportedly for Hong Kong businessman Sam Li. It has a dramatic fastback roof that was a hit when revealed to the public in 2017. Rolls didn’t confirm the car’s cost, but some reports said more than US$12 million. The Sweptail has been spotted on the road in Europe.

The Droptails are Rolls’ first roadsters in modern history.
Rolls-Royce

The Boat Tail, shown (above) in 2021 and built on the Architecture of Luxury platform with Phantom V12 power, was the first commission from a consortium of three couples. It’s a unique convertible with a carbon-fibre parasol that opens to shade its occupants during al fresco parties. Beyoncé and Jay-Z are reported Boat Tail owners. Argentine footballer Mauro Icardi is said to be another keeper of the keys. The purchase price of these cars is around US$28 million, sources say.

There will be a total of four Droptail roadsters created, and these now include the Amethyst Droptail and the La Rose Noire Droptail, each with unique rear-deck treatments and personal detailing throughout. The newest, third commission is Arcadia Droptail, which will come with a removable hardtop (and no soft top). The car will be delivered to an international client in Singapore, said Rolls’ Americas spokesman, Gerry Spahn. The price tag is likely in Boat Tail territory.

Arcadia was known in Greek mythology as a place of “Heaven on Earth.” The one-off car has a vivid recessed wood-panelled rear deck that took 8,000 hours to create, according to the company, and recalls vintage Chris Craft power boats—or woodie station wagons. It’s in left-hand drive, reportedly to better facilitate its use around the world. Rolls used a 3-D environment to show the client how the car would look in various locales.

“Coachbuild commissions like Droptail Arcadia are immediately the classic Rolls-Royce collectibles. Coachbuild is more than Bespoke, it’s the ultimate personal statement,” says Martin Fritsches, president of Rolls-Royce Motor Cars in North America.

Alex Innes, head of Coachbuild Design, added (in a statement) that the Arcadia is “one of the most faithful expressions of an individual’s personal style and sensibilities we have ever created within the Coachbuild department.”

Design inspiration for the Arcadia came from sky gardens in Singapore, Indonesia, and Vietnam, in addition to British “biometric” architecture.

The white paint is infused with aluminium and glass particles to give it depth and shine. The lower sections of the Arcadia Droptail are in carbon fibre, painted silver. The wood on the rear panel is mirrored on the dashboard (in Santos Straight Grain veneer), door linings, and central armrest. The wood pieces were mounted on stiff bases developed using carbon-fibre layering techniques derived from Formula One racing.

The Arcadia Droptail has a unique wood panel on its rear deck.
Rolls-Royce

The hardtop, in a contrasting dark colour, slants down to a short rear greenhouse, giving the car a racy look. The doors are rear-hinged, with prominent chromed handles. The nose and grille are somewhat rounded, with narrow horizontal headlights, yielding a more aerodynamic prow than is customary in Rolls-Royce history.

The dash’s crown jewel is a clock with a face that took five months to assemble, after two years of development. Its raw metal geometric guilloche pattern has 119 facets. Rolls describes it as “the most complex Rolls-Royce clock face ever created.” The hands are partly polished and partly brushed, and have 12 hand-painted “chaplets” (hour markers) that are only 0.1 millimetres thick.

Many automakers are establishing bespoke divisions, but Rolls-Royce is, per tradition, taking it further than others.

Chip makers are fighting to assure investors that the artificial-intelligence boom is racing forward. Wall Street might not believe it until Nvidia’s NVDA -0.98%decrease; down pointing triangle Jensen Huang says so.

When Huang steps up to the mic for his company’s earnings call Wednesday, he will have the world’s attention. What he says about Nvidia’s present will preview the future of AI, dictate the path forward for a tech-crazed stock market and influence an American economy increasingly tethered to hopes that the boom won’t go bust.

The $5 trillion chip maker has provided the key building blocks for AI since the launch of ChatGPT in 2022 set off a race for dominance among OpenAI, Anthropic and established Silicon Valley giants. Now, as Nvidia backstops sprawling data-center projects and an exotic money pipeline to boost chip demand, the company’s influence is arguably bigger than ever.

But there are signs of trouble ahead. Political pushback to AI is growing. A bond selloff propelled borrowing costs to their highest levels in years. The hyperscalers that include some of Nvidia’s key customers—once cash-printing machines—are relying more on debt. OpenAI recently told investors its revenue rose by a tepid 18% in the second quarter while its losses deepened.

Nvidia is increasingly stepping in to shore up potential weak points across the market. Earlier this month, the company teamed up with six of Wall Street’s biggest firms on a $500 billion AI-financing plan, pledging to backstop lending to customers that can’t afford its chips otherwise. The chip maker last week also took a stake in Cloverleaf Infrastructure, which arranges power for data centers, and struck a $6 billion deal with startup Poolside aimed at developing a powerful open-weight AI model.

After watching shares in other chip makers and the so-called Magnificent Seven tech companies swing wildly in recent months, Wall Street is hoping Nvidia can beat expectations—again. The countdown is on.

“It’s kind of becoming more and more like the World Cup final than the Super Bowl at this point,” said Brian Mulberry, chief market strategist at Zacks Investment Management. “It’s just gotten to be that big.”

The company has smashed analysts’ earnings estimates for each of the 14 quarters since the AI boom kicked into high gear. Nvidia posted 210% annual growth in net income in its last three-month period, according to FactSet, making Wall Street’s 126% projection look pedestrian.

Expectations for a blowout second quarter have risen rapidly over the course of this year. All Nvidia will have to do to beat this target: outrun 95% annual earnings growth to more than $51.5 billion. Analysts project the chip maker will report record sales of $92 billion for the period, up from a forecast of $78 billion at the start of this year.

In July, big-tech earnings sparked volatility. Concerns about runaway capital spending spread across the sector after Alphabet’s and Tesla’s results, driving a $890 billion wipeout that contributed to the unwind of hedge fund Situational Awareness. Microsoft posted the largest one-day gain in market capitalization by any company, ever, after a quarter proving that it could still show investors the money. SpaceX rocketed higher after a record-breaking initial public offering, only to see $1 trillion in value evaporate.

Surging memory prices and borrowing costs have fueled fears that those and other companies will be unable to keep plowing more money into supplies including Nvidia chips. Shaia Hosseinzadeh, founder of OnyxPoint Global Management, has recently bought dips in AI-infrastructure stocks when Wall Street has strained to absorb massive debt issued by Silicon Valley.

“The macro data is really quite robust,” he said. “Of course, there’s a level at which everything breaks.”

Investors have kept pumping money into the AI trade despite concerns around chip consumers—and to the benefit of chip producers. That is why Nvidia’s outlook for semiconductor demand could send ripples through counterparts such as Micron Technology and Sandisk, developers of the data centers in which their chips reside, and a supply chain of power producers, contractors and other specialists that underpin the globe-spanning AI build-out.

“We joke internally that we’re all Nvidia analysts now,” said David Lefkowitz, head of U.S. equities at UBS Global Wealth Management.

The irony is that investors have tended to sell Nvidia stock immediately after blockbuster earnings, with shares falling each trading session after its four past quarterly reports. Some are betting that will be the case this time around, too.

The options market is pricing in a 5.3% swing, higher or lower, in Nvidia shares during the session following earnings, according to Option Research & Technology Services. That is higher than the 4.8% average move in Nvidia’s stock over the last 12 months after the company reports quarterly results.

In recent days, some of the most actively traded Nvidia options have been put contracts tied to the stock falling from its Friday value of $214.75 to $205 and $210 apiece, according to Cboe Global Markets data. Put options give the right to sell a stock by a set price and typically represent a bearish wager.

Many analysts remain optimistic. Frank Lee, global head of tech hardware and semiconductor research at HSBC Global Investment Research, recently raised his price target for Nvidia shares to $360 from $325, citing, among other things, Nvidia’s strategic partnerships with suppliers and its role as a top contributor to open-source AI.

Build Your Own Rolls-Royce: Inside the Arcadia Droptail Roadster, the Latest From the Company’s Coachbuild Operation

Nvidia’s earnings will test Wall Street’s confidence in the AI boom.