Ferrari’s Leap Into the Electric Car Market With a $500,000 Price Tag

Ferrari’s Leap Into the Electric Car Market With a $500,000 Price Tag

Ferrari will have an extra vehicle assembly line at the new Maranello plant, which will also produce the new EV, gasoline and hybrid vehicles and parts for both types of vehicles.

As the premium carmaker prepares to open a plant that will make the model, Ferrari’s first electric car will cost at least 500,000 euros ($535,000), a source familiar with the matter told Reuters. This may increase group production by up to a third.

Renowned for its thunderous gasoline engines, the Italian manufacturer has announced that it will introduce an electric vehicle towards the end of next year. The estimated cost indicates the company’s assurance that the ultra-wealthy will be prepared for the purchase, despite mass-market competitors cutting the cost of electrical vehicles (EVs) due to declining demand.

The price tag, which includes extras and customizations that add 15-25% to the final cost, is significantly more than the average sale price of a Ferrari in the first quarter of this year, which was around 350,000 euros, including extras, and many competing premium EVs.

Porsche’s electric Taycan is priced in a less expensive market at approximately 100,000 euros. When asked about the cost of its first electric vehicle or the new plant that is set to open in its hometown of Maranello, northern Italy, on Friday, Ferrari did not reply.

Speaking on condition of anonymity, the source stated that the plant, also known as the “e-building,” is a risky step for the company, which last year supplied fewer than 14,000 cars. Eventually, it will allow production capacity to climb to about 20,000.

Since exclusivity is the foundation of the brand’s cachet and premium costs, there are hazards associated with any increase in output.

But Ferrari has demonstrated that it can succeed by branching out from its conventional two-seat sports car and grand tourers with the introduction of its Purosangue SUV in 2022.

Portfolio manager at AcomeA SGR, which owns Ferrari shares, Fabio Caldato stated, “There is an increasing demand out there for Ferraris, and they have room to meet part of it without compromising exclusivity.”

Certain models have waiting lists longer than two years. That’s not going to grow shorter. In addition to pointing out a rise in prospective affluent clients in developing regions like India and the Middle East, Caldato stated that “being on the waiting list is in and of itself a status symbol.”

Ferrari will have an extra vehicle assembly line at the new Maranello plant, which will also produce the new EV, gasoline and hybrid vehicles and parts for both types of vehicles.

According to the source, it will be completely functional in three to four months.

The source also mentioned a second electric car type is being developed. The process is still in its early stages, and the corporation may not wish to raise overall output to 20,000 vehicles annually, at least not right now.

The “state of the art plant will assure us of flexibility and technical capacity in excess of our needs for years to come,” Ferrari CEO Benedetto Vigna said in April to the company’s shareholders.

The insider claimed that Ferrari would adhere to its policy of maintaining output for any model within a specific limit, regardless of success, therefore any increase in output would inevitably result in an increase in models.

In 2028, rival Lamborghini intends to launch its first electric vehicle. Being first wasn’t as crucial as having the proper product, according to company CEO Stephan Winkelmann, who spoke with Reuters.

Analyst Andrea Balloni of Mediobanca predicted that Ferrari’s new electric vehicle would cost a lot of money in order to maintain profit margins and offset the cost of developing new fully electric technology and sourcing more parts from outside sources.

Balloni stated, “I expect the new EV to be a niche model, accounting for just over 10% of annual sales,” noting that the majority of Ferrari’s customers still favored gasoline-powered vehicles.

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