Ferrari’s First EV to Exceed $500,0002 min read

Ferrari’s first electric vehicle (EV) is set to debut with a starting price of at least 500,000 euros ($535,000). The luxury carmaker is poised to unveil a new plant that will manufacture this model, potentially increasing the company’s production capacity by up to a third.

Scheduled for a late next year launch, Ferrari’s inaugural EV reflects the company’s confidence in the market readiness of ultra-wealthy buyers, even as mass-market competitors reduce EV prices due to sluggish demand. This substantial price tag, excluding additional custom features and personal touches which typically add 15-20%, significantly surpasses Ferrari’s average sale price of around 350,000 euros (including extras) in the first quarter of this year, as well as many rival luxury EVs. In contrast, Porsche’s electric Taycan starts at approximately 100,000 euros.

Ferrari has not commented on the EV’s pricing or the new plant, which will be inaugurated on Friday in Maranello, northern Italy. The new factory, referred to as the e-building, represents a bold move for Ferrari, which delivered fewer than 14,000 cars last year. This facility will eventually allow Ferrari to increase its production capacity to around 20,000 vehicles annually, according to the anonymous source.

Exclusivity remains a key element of Ferrari’s brand prestige and pricing strategy, making any increase in production potentially risky. Nevertheless, Ferrari’s successful launch of the Purosangue SUV in 2022 demonstrated its ability to expand beyond traditional two-seat sports cars and grand tourers. Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Ferrari shares, noted an increasing demand for Ferraris, suggesting the company can expand without compromising its exclusivity. Waiting lists for some models can exceed two years, with being on the list itself considered a status symbol. Caldato also highlighted a growing base of wealthy potential customers in emerging markets such as India and the Middle East.

The new Maranello factory will feature an additional vehicle assembly line, producing petrol, hybrid, and electric cars, as well as components for hybrids and EVs. Expected to be fully operational within three to four months, the factory also has a second EV model in early development. However, the company may not immediately increase overall production to 20,000 vehicles per year. CEO Benedetto Vigna told shareholders in April that the new state-of-the-art plant would ensure flexibility and technical capacity beyond Ferrari’s needs for years to come. Any production increase would be matched with the introduction of new models, adhering to Ferrari’s policy of limiting output for each model to maintain exclusivity.

In comparison, rival Lamborghini plans to launch its first EV model in 2028. Lamborghini CEO Stephan Winkelmann emphasized that having the right product is more crucial than being first to market. Mediobanca analyst Andrea Balloni expects Ferrari’s new EV to carry a high price to preserve margins, balancing the costs of new electric technology development and the larger number of externally sourced parts. Balloni predicts the new EV will be a niche model, accounting for just over 10% of annual sales, as core Ferrari clients still prefer petrol models.

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