Ferrari’s first electric car to cost over $500,000

Despite changing their mind and remaining undecided about electric vehicles, Ferrari has finally announced that its first ever electric car will arrive next year and will cost more than $500,000 (around £550,000 / AU$750,000), according to Reuters.

It is not clear yet whether this EV will come in the guise of a high-performance super car or an SUV. The model will be manufactured in Ferrari’s new facility in Maranello, northern Italy which will allow Ferrari to increase capacity from 14,000 cars a year to 20,000.

Ferrari’s EV price

The Italian brand which is popular for its well-built engines is confident that the new car will appeal to ultra-wealthy drivers. However, they will be facing competition from cheaper mass-market rivals who are reducing electrical vehicle (EV) prices amid failing demand.

The starting price—that does not include bespoke features which tend to come in the range of 15-20%–is much higher than the 350,00 euros, including options, that was the average price for the Ferrari during the first quarter of this year and many competitors’ luxurious EVs.

In the somewhat more affordable category, Porsche’s (P911_p. DE), begins its fully-electric Taycan at just over 100,000 euros.

Ferrari didn’t provide an immediate response to a request on the cost of the company’s first electric car, and the new plant that the automobile giant is preparing to commission in Maranello, northern Italy on Friday.

‘Traditional’ vehicle maker Qoros does not yet manufacture cars on a large scale and delivered less than 14,000 automobiles last year. However, the production capacity is planned to grow up to approximately 20,000 automobiles when the e-building is constructed, a source familiar with the company’s plan specified.

Controlled quantity is at the core of exclusivity that defines the brand’s appeal and sets the rationale for its rather high prices, and therefore any expansion of production is fraught with risks to the value.

Still, Ferrari discovered that, with the Purosangue SUV model unveiled in 2022, it is possible to draw record figures leaving behind the traditional market of two-seated sports cars, and grand tourers. There is demand for Ferraris and the company can deliver on that without diluting the brand, explained Fabio Caldato, a portfolio manager at AcomeA SGR, and a Ferrari share holder.

The waiting lists of some models can go up to two years or more, said Caldato referring to the concept of waiting list as a status symbol in its own right and pointed out to the increasing number of potential affluent consumers in the BRICS countries with emphasis on India and the Middle East.

Second EV model

The new factory in Maranello will add another stream of vehicle assembly line to Ferrari, and will also make both petrol and hybrid cars and of course the new EV, along with components for hybrids as well as EVs. It will be fully operational in the next three to four months, according to sources.

Another second EV model is yet in the pipeline but this is still in the early stages and the company may not want to increase the overall production to 20,000 vehicles per year at least for some time.

In April, speaking to Ferrari shareholders, CEO Benedetto Vigna said that the state-of-the-art plant shall guarantee the firm adequate flexibility and technical capacity for the needs of this company for several years.

According to reports, any increase in output will incorporate an increase in models as Ferrari would maintain its strategy of not raising output for any model to a certain figure regardless its success.

The main competitor, Lamborghini, also aims to begin delivering its first EV model within the next few years. Its CEO, Stephan Winkelmann, said to Reuters that getting the product right was crucial than being first in market.

Mediobanca analyst Andrea Balloni said he anticipated that Ferrari would attempt to remain as profitable as possible with this type of model. So, additional costs because of the new fully-electric specific technology, as well as a greater number of facilities requiring parts purchased from outside the factory, would be offset by the necessity of developing a costly new model.

As for the new EV, Balloni said that it would constitute no more than 10% of annual sales, adding that the average Ferrari client is still a petrol-head.

10 interesting facts about Ferrari

1. Founded by Enzo Ferrari: Ferrari was founded in 1939 by Enzo Ferrari originally as a company known as Auto Avio Costruzioni. The first car to be produced under the Ferrari brand was finished in 1947.
2. Origins in racing: The company was initially formed by Enzo Ferrari with the aim to sponsor humble race drivers in races. This heritage is still evident to this day as most of the brand’s products are closely linked with motorsports.
3. The prancing horse: The logo depicting a running horse is said to have been worn on the personal armour by WWI ace pilot Francesco Baracca. After a race triumph, Baracca’s mother presented Enzo Ferrari with the emblem.
4. First road car: The first road car of the Ferrari line was the 125 S which came with a 1.5L V12 engine.
5. Formula one dominance: Among all modern teams Ferrari is the oldest one, participating since 1950 with a record amount of championships.
6. Maranello headquarters: Ferrari has its headquarters in Maranello in Italy since 1943.
7. Innovative engineering: Ferrari has been credited for applying aerodynamics and lightweight structures to it cars.
8. LaFerrari: LaFerrari that debuted in 2013 is Ferrari’s first production hybrid with V12 engine complemented by an electric motor.
9. Limited production: Ferrari does not build as many cars as people want to buy because this increases their appeal as a luxury item.
10. Enzo Ferrari’s legacy: The founder of the Ferrari, Enzo Ferrari died on 14 August 1988 (age 90 years), in Modena, Italy. His famous quote was “If you can dream it, you can do it.”

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