Ferrari’s First Electric Vehicle: A Bold Move for the Luxury Brand
Ferrari, known for its powerful petrol engines and high-end luxury vehicles, is set to make a groundbreaking move by introducing its first electric car. According to a source familiar with the matter, this new electric vehicle will come with a hefty price tag of at least $535,000. While other mass-market competitors have been reducing the prices of their electric vehicles due to decreased demand, Ferrari remains confident that there is a market for an electric car tailored to the exceedingly affluent drivers.
The anticipated price of Ferrari’s electric vehicle reflects the brand’s commitment to exclusivity. Many premium electric vehicles from competing brands have an average sale price of around $376,000. However, it’s important to note that this price doesn’t include amenities and personal details, which typically contribute 15-20% to the final cost. In comparison, Porsche’s electric Taycan, which falls into a less exclusive market segment, starts at approximately $107,500.
To support the production of its electric vehicle, Ferrari is constructing a new facility in Maranello, Italy. This plant is expected to increase the group’s productivity by up to one-third. While Ferrari has not commented on the cost of its first electric vehicle or the new facility, this move demonstrates the brand’s boldness and its commitment to adapting to changing market demands.
Despite concerns that increasing production could dilute Ferrari’s exclusivity, the company has shown success in diversifying its offerings. In 2022, Ferrari plans to introduce its Purosangue SUV, expanding beyond its traditional two-seat sports cars and grand tourers. Fabio Caldato, a portfolio manager at AcomeA SGR, believes there is growing market demand for Ferraris and that the brand can meet some of this demand without compromising its exclusivity. Waiting lists for Ferrari models can exceed two years, further solidifying the brand’s status symbol.
Ferrari is also looking to the future with plans for a second electric vehicle. The new Maranello plant will provide an additional assembly line for the production of electric and hybrid vehicles, as well as their components. While details about this second electric vehicle are still in the early stages, Ferrari may not initially increase overall output to 20,000 vehicles per year.
Analysts anticipate that Ferrari’s electric vehicle will be a niche product, accounting for a small portion of yearly sales, with the majority of customers still favoring gasoline-powered cars. Andrea Balloni, an analyst at Mediobanca, suggests that the high price of the electric vehicle is necessary to maintain profit margins, given the increased reliance on external suppliers and new electric technology.
In contrast, Lamborghini, a competitor to Ferrari, plans to introduce its first electric vehicle in 2028. CEO Stephan Winkelmann emphasizes the importance of having the right product rather than rushing into the electric vehicle market for novelty’s sake.
In conclusion, Ferrari’s decision to enter the electric vehicle market is a significant step for the luxury brand. With its first electric car set to be priced at a minimum of $535,000, Ferrari is catering to the ultra-wealthy drivers who seek exclusivity and performance. While there may be concerns about diluting the brand’s cachet with increased production, Ferrari has proven its ability to adapt and diversify while maintaining its status as a symbol of luxury and prestige.