July 21, 2024
Electric & Hybrid Cars

Reportedly, Ferrari’s inaugural electric vehicle is expected to be priced at more than $500,000

MILAN — Ferrari’s initial electric vehicle is set to have a starting price of at least 500,000 euros ($535,000), according to a source familiar with the matter. This marks a bold move for the luxury automaker as it gears up to inaugurate a new plant that will manufacture the model, potentially boosting overall production by up to 33%.

The renowned Italian brand, known for its powerful petrol engines, has announced plans to introduce an electric car towards the end of next year. The targeted price point reflects Ferrari’s confidence that affluent drivers are prepared for this shift, despite competitors in the mass market segment cutting prices of electric vehicles due to sluggish demand.

The estimated price does not account for additional features and customization, which typically increase the final cost by 15-20%. It significantly surpasses the average selling price of a Ferrari in the first quarter of this year, which stood at around 350,000 euros with extras, as well as the prices of many rival luxury electric vehicles.

For comparison, Porsche’s electric Taycan starts at approximately 100,000 euros, catering to a less exclusive market segment.

Ferrari has not provided a comment on the pricing of its upcoming electric vehicle or the new plant in Maranello, Italy, set to be unveiled later this week.

The new facility, referred to as the e-building, signals a significant expansion for Ferrari, which delivered fewer than 14,000 cars in the previous year. Once fully operational, the plant is expected to ramp up production capacity to around 20,000 vehicles annually, as per the undisclosed source.

While exclusivity has long been a cornerstone of the brand’s allure and pricing strategy, any increase in production volume carries inherent risks.

However, Ferrari’s successful foray into the SUV market with the Purosangue model in 2022 demonstrates its ability to diversify beyond traditional sports cars and grand tourers.

According to Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Ferrari shares, there is a growing demand for Ferraris globally, with potential expansion opportunities in emerging markets like India and the Middle East.

SECOND ELECTRIC VEHICLE MODEL

The forthcoming Maranello plant will house an additional assembly line for Ferrari, enabling the production of petrol, hybrid, and electric vehicles, along with hybrid and electric components.

The facility is slated to be fully operational within three to four months, as per the source.

Furthermore, a second electric vehicle model is already in the works at Ferrari, although the development process is in its early stages. The company may not immediately target an overall production increase to 20,000 vehicles per year, at least in the near future.

Ferrari CEO Benedetto Vigna reassured shareholders in April that the state-of-the-art plant would provide the necessary flexibility and technical capabilities to meet future demands.

Rival luxury automaker Lamborghini is projected to introduce its initial electric vehicle model in 2028. CEO Stephan Winkelmann emphasized the importance of delivering the right product rather than being the first to market.

Analyst Andrea Balloni from Mediobanca anticipates that Ferrari’s new electric vehicle will come with a premium price tag to safeguard profit margins, offsetting the costs associated with developing fully electric technology and sourcing a larger number of components externally.

“I anticipate the new electric vehicle to cater to a niche market, representing slightly over 10% of annual sales,” Balloni stated, noting that the core Ferrari clientele still favors conventional petrol models.

FAQ

  • What is the expected starting price of Ferrari’s first electric car?
  • When is the new plant in Maranello, Italy, scheduled to be inaugurated?
  • How many cars did Ferrari deliver last year?
  • What other types of vehicles will the Maranello plant produce besides electric cars?
  • Is Ferrari planning to introduce a second electric vehicle model?

Conclusion

Ferrari’s venture into the electric vehicle market with its upcoming model signifies a notable shift for the brand, balancing exclusivity with strategic expansion. The high price point reflects the company’s confidence in catering to affluent consumers while maintaining its prestigious image. The inauguration of the new plant in Maranello heralds a new chapter for Ferrari, with potential growth opportunities on the horizon.

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