A row of Ferrari bodies rolls on robotic conveyors through a gleaming new factory in northern Italy. At each station, engineers in cherry-red uniforms add a component — an engine block, a dashboard, a steering wheel — as they transform the bodies into hybrid vehicles. The next step: all-electric.
The stakes are high at Ferrari's 200 million euro “electric edifice,” which came online last month and is almost twice the size of Rome's Colosseum. The factory aims to bring the 77-year-old sports car maker, known for the sonorous roar of its gasoline engines, into the age of electrification.
But the effort comes at a precarious time for the auto industry. The transition to electric vehicles, which was supposed to quickly usher in an era of environmentally friendly transportation, has been slowed by costly investments and a slowdown in global demand.
Other luxury carmakers have struggled to embrace the electric model. Mercedes Benz and Lamborghini Automakers have scaled back their ambitions. Tesla on Tuesday reported a second-quarter sales decline and Ford Motor said in April it would shift production to more hybrids as electric vehicle losses piled up. A growing trade war between China and the West also threatens to stifle growth.
Despite the challenges, Ferrari sees an opportunity in the industry’s inevitable march toward electrification to reach a new consumer: wealthy environmentalists. The company aims to introduce its first all-electric model in the fourth quarter of next year. As part of its strategy, the automaker has hired LoveFrom — the agency founded by Jony Ive, Apple’s former design chief, and industrial designer Marc Newson — to refine the car’s look.
There is a lot of mystery surrounding the still-unnamed vehicle, including how long its battery will last and what it will sound like. The company has not revealed what it will look like, how many it will produce, or how much it will cost. But it could be one of the most expensive electric vehicles on the market, according to analysts, outselling the likes of the previous generation. The $286,000 Porsche Taycan Turbo GT.
Ferrari's foray into electric vehicles will be notable for other reasons. Regulators may be pushing for electric vehicles, but skepticism remains in the market. Winning over combustion engine fans won't be easy. Even for Ferrari. And the industry is desperate for a car manufacturer, any carmaker, to demonstrate that electric vehicles can generate big profits.
“It’s worth watching whether a Ferrari EV can maintain the kind of price premium that would be associated with a Ferrari,” said Martino de Ambroggi, an automotive analyst at Equita, an investment bank in Milan. “Often, buying a Ferrari is also seen as a kind of investment. Only after a few years will we see whether that investment in an electric Ferrari holds up.”
Benedetto Vigna, Ferrari’s chief executive, is doing his best to keep the market guessing. In an interview last month at the new plant, he said the company would begin full-scale production of electric vehicles in early 2026. By 2030, electric and hybrid cars will account for up to 80 percent of Ferrari’s annual output as the company seeks to meet strict European Union emissions mandates.
In the meantime, the e-build company will launch two models: the SF90 Stradale, a plug-in hybrid, and the Purosangue with a combustion engine.
Ferrari doesn’t need an electric vehicle to boost its bottom line. Under Vigna, a former executive at chipmaker STMicroelectronics who took the helm nearly three years ago, the company has been on a roll. The stock is one of the best performers in Europe this year, giving it a market valuation of about $75 billion, higher than that of Ford or General Motors. Profits are soaring along with prices at Ferrari, which makes some of the most expensive cars on the planet. a three-year waiting list For some models.
Ferrari's success over the years on the Formula 1 track has also given rise to a lucrative corporate sponsorship and merchandising business that has transformed it into a luxury brand with a sporty edge. Ferrari's Prancing Horse logo can be found on high-end apparel such as a Ferrari 790 cashmere sweater.
Vigna believes that electric vehicles are part of the company's growth strategy, despite the slowdown in the sector. “I have clear ideas about some potential customers who will never become part of the family if there is no electric car,” he says.
But challenges lie ahead. Enthusiasts gathered outside the factory gates last month were wondering: Will it look, drive and sound like the classic Ferrari roar, or will it have the understated whine of most electric vehicles?
“When you think of a Ferrari, you still have that feeling of the engine, and you also think of the roar,” said de Ambroggi. “I don’t know how Ferrari solves this.”
Mr. Vigna answers that question often, especially from long-standing clients or Ferraristi.. They appear to be channeling the late founder Enzo Ferrari, who once explained in the simplest of terms how he built some of the fastest cars on the planet: “I build engines and strap them to wheels.”
Vigna's talk about electric vehicles strikes a different tone. “The electric motor will not be silent,” he said. “There are ways to ensure that the emotion you get when driving an electric Ferrari is the same as when driving a hybrid or thermal Ferrari.”
Battery life is another piece of the puzzle. As Ferraris typically sell for a higher price on the secondary market, concerns about battery degradation and its impact on the car’s long-term value may resonate more with Ferrari fans.
“The transition to electric vehicles raises a lot of new issues in terms of how to maintain the vehicle,” said Stephen Reitman, an automotive analyst at Bernstein.
Ferrari's long-time partner SK On, a South Korean battery manufacturer, will supply the components for the EV batteries, which Ferrari will assemble in the electrical building, where it will also make the car's electric motors and axles.
And then there's the question of price. Last month, Reuters reported reported The car is believed to be priced at least at 500,000 euros ($540,000). Vigna dismissed the speculation, saying it was too early to talk about a price.
Ferrari continues to stick to its founder's principle of producing a limited number of extremely expensive cars. Last year, Ferrari built fewer than 14,000 units; even with electric manufacturing, production is not expected to increase much at first.
The limited number of examples may explain why fans make the pilgrimage to Maranello in the hope of seeing a Ferrari, either at the company's Formula 1 test track or near its red-brick factory.
Knowing that demand is high, Mr. Vigna has raised the base price of most models by more than 25 percent.
“Ferrari consistently undersells the market, leading to a multi-year backlog,” said Bernstein analyst Reitman. With a profit margin of nearly 30 percent, Ferrari's business is more like that of a luxury brand like Hermes or Rolex, analysts say.
Vigna is already thinking about how to market the new electric car. The target customer will probably not buy the car for purely practical or environmental reasons, he said, adding: “The emotional part of the brain is what drives the purchase.”
