Ferrari, renowned for its powerful petrol engines, is set to unveil its first electric car late next year, with a price tag exceeding 500,000 euros ($535,000). This bold move by the Italian luxury automaker reflects its confidence in the readiness of ultra-wealthy drivers for high-end electric vehicles (EVs), despite a competitive landscape where mass-market rivals are slashing EV prices due to sluggish demand.

Ferrari's Electric Future

According to sources familiar with the development, Ferrari's inaugural electric vehicle will be priced at a minimum of 500,000 euros. This announcement comes as Ferrari prepares to inaugurate a new manufacturing facility in its hometown of Maranello, northern Italy, which is expected to increase group production by up to a third.

The planned price tag, excluding additional features and personalizations that typically increase the cost by 15-20%, far surpasses the average sale price of approximately 350,000 euros, including extras, for a Ferrari in the first quarter of this year, as well as many other luxury EVs. For instance, Porsche's electric Taycan starts at around 100,000 euros, catering to a less exclusive segment.

New Manufacturing Facility

The new plant, referred to as the e-building, is a strategic move for Ferrari, which delivered fewer than 14,000 cars last year. The facility is expected to increase production capacity to around 20,000 vehicles. This expansion is aimed at meeting growing demand for Ferraris while maintaining exclusivity, a cornerstone of the brand's cachet and high prices.

The Maranello factory will include an additional assembly line for vehicles, producing both petrol, hybrid cars, and the new EV, along with components for hybrids and EVs. It is slated to be fully operational within three to four months, enhancing Ferrari's flexibility and technical capacity for years to come.

Future Plans

In addition to the first electric model, Ferrari is also developing a second EV, although this process is still in its early stages. The company may not immediately increase overall production to 20,000 vehicles per year, despite the new facility's capabilities, according to sources.

CEO Benedetto Vigna, addressing Ferrari shareholders in April, emphasized that the new plant would provide the flexibility and technical capacity needed to exceed the company's requirements in the coming years. Ferrari intends to maintain its policy of limiting production for each model, even if they prove successful.

Market Reaction and Insights

"There is increasing demand for Ferraris, and they have the capacity to meet part of it without compromising exclusivity," said Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Ferrari shares.

The luxury automaker has demonstrated its ability to expand beyond traditional sports cars and grand tourers with the success of the Purosangue SUV, launched in 2022.

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