Ferrari’s first electric car is set to make a grand entrance with a starting price of at least 500,000 euros ($535,000), according to a source familiar with the matter. This move highlights Ferrari’s confidence that its ultra-wealthy clientele is ready to embrace electric vehicles (EVs), even as mass-market competitors reduce EV prices amid fluctuating demand.
The Italian luxury automaker, renowned for its powerful petrol engines, plans to launch the electric car late next year. The starting price, which excludes additional features and personal touches that typically add 15-20%, significantly exceeds the average sale price of around 350,000 euros, including extras, for a Ferrari in the first quarter of this year. This price is also much higher than many rival luxury EVs. For comparison, Porsche’s electric Taycan starts at around 100,000 euros.
Ferrari did not respond to requests for comments about the price of its first EV or the new plant set to be inaugurated in Maranello, northern Italy, on Friday. This new factory, referred to as the e-building, represents a significant expansion for Ferrari, which delivered fewer than 14,000 cars last year. The facility will eventually increase Ferrari’s production capacity to around 20,000 vehicles per year, according to the source, who requested anonymity.
Exclusivity is a key element of Ferrari’s brand appeal and high prices. Therefore, any increase in production capacity comes with inherent risks. However, Ferrari has demonstrated its ability to expand beyond its traditional two-seat sports cars and grand tourers with the successful launch of the Purosangue SUV in 2022.
“There is an increasing demand out there for Ferraris, and they have room to meet part of it without compromising exclusivity,” said Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Ferrari shares. Waiting lists for some models can exceed two years, which Caldato noted is a status symbol in itself, particularly among wealthy customers in emerging markets like India and the Middle East.
New factory and future plans
The new factory in Maranello will provide Ferrari with an additional vehicle assembly line. It will produce petrol and hybrid cars as well as the new EV, along with components for hybrids and EVs. The factory will be fully operational within three to four months.
A second EV model is also in development, although it is still in the early stages. The company might not want to increase overall production to 20,000 vehicles per year immediately, the source indicated.
Ferrari CEO Benedetto Vigna told shareholders in April that the “state of the art plant will assure us of flexibility and technical capacity in excess of our needs for years to come.” Any rise in output would involve an increase in models, as Ferrari intends to keep the production of any model within certain limits to maintain exclusivity.
Competitors and market expectations
Rival Lamborghini plans to start selling its first EV model in 2028. Lamborghini’s CEO, Stephan Winkelmann, emphasized that having the right product is more important than being the first to market.
Mediobanca analyst Andrea Balloni expects Ferrari’s new EV to have a high price tag to help preserve margins, compensating for the development costs of the new fully-electric technology and the larger number of parts sourced externally. “I expect the new EV to be a niche model, accounting for just over 10% of annual sales,” Balloni said, adding that the core Ferrari clientele still prefers petrol models.
Ferrari’s foray into the electric vehicle market represents a significant shift for the luxury automaker. With a high price tag and the backing of a new state-of-the-art factory, Ferrari is betting on the continued demand for exclusivity and performance among its wealthy customers. As the company navigates this new territory, it aims to maintain its reputation for excellence while meeting the evolving preferences of its clientele.
