Gliding on robotic trucks, a series of Ferrari chassis maneuver through a shiny new factory in Northern Italy. At each station, engineers in red uniforms add a component—an engine block, a dashboard, a steering wheel—as they transform the bodies into hybrid vehicles. Next: fully electric.
A lot is riding on Ferrari’s €200 million e-building, which opened last month and is almost twice the size of Rome’s Colosseum. The plant is intended to bring the 77-year-old sports car maker, known for the sonorous potential of its gas 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 usher in an era of climate-friendly transport, has instead been squeezed by costly investment and slowing global demand.
Other luxury car makers have struggled to go electric. Mercedes-Benz and Lamborghini have scaled back their ambitions. Tesla reported a drop in second-quarter sales on Tuesday, and Ford Motor said in April it would shift production to more hybrids as EV losses pile 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 move towards electrification to reach a new consumer: the wealthy environmentalist. It plans to unveil its first all-electric model in the fourth quarter of next year. As part of its strategy, the automaker enlisted LoveFrom — the company founded by former Apple design chief Jony Ive and industrial designer Marc Newson — to improve the car’s appearance.
There’s plenty of mystery surrounding the yet-to-be-named car, including its battery life and how it’ll sound. The company has not revealed its appearance, production or price. But it could be one of the most expensive electric vehicles on the market, analysts say, surpassing Porsche’s $286,000 Taycan Turbo GT.
Ferrari’s foray into electrics will be notable for other reasons. Regulators may be pushing electric vehicles, but there is lingering skepticism in the market. Winning over fans of internal combustion engines won’t be easy — even for Ferrari. And the industry is desperate for an automotive, Any automotive industry, to prove that electric vehicles can bring big profits.
“It’s worth watching whether a Ferrari EV can maintain the kind of price premium you would associate with a Ferrari,” said Martino de Ambroggi, an auto analyst at Equita, an investment bank in Milan. “Often, a Ferrari purchase is also seen as a kind of investment. Only after a few years will we see if this investment in an electric Ferrari holds up.”
Benedetto Vigna, Ferrari’s chief executive, is doing his best to keep the market on hold. In an interview last month at the new factory, he said the company would begin full-scale production of electric vehicles in early 2026. By 2030, electric and hybrid cars will make up as much as 80 percent of Ferrari’s annual output, as the company seeks to meet the strict mandates of the European Union for emissions.
Meanwhile, the e-building will present two models: the SF90 Stradale, a plug-in hybrid and the Purosangue internal combustion engine.
Ferrari doesn’t need an electric vehicle to complement its value. Under Mr. Vigna, a former executive at chipmaker STMicroelectronics who took the helm nearly three years ago, the company has fallen apart. The stock has been 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 alongside prices at Ferrari, which makes some of the most expensive cars on the planet. There is a three-year waiting list for some models.
Ferrari’s success over the years on the Formula 1 circuit has also led to a lucrative corporate sponsorship and merchandising business that has transformed it into a luxury brand with a sporty feel. Ferrari’s horse logo can be found on high-end clothing, such as a €790 cashmere sweater.
Mr. Vigna sees the electric vehicle as part of the company’s growth strategy, despite the industry slowdown. “There are some potential customers, I have them clearly in mind, who will never become part of the family if there is no electric car,” he said.
But the challenges are clear. Enthusiasts gathered outside the factory gates last month wondered: Will it look, handle and sound like the classic Ferrari growl, or will it have the restrained whine of most electric vehicles?
“When you think of a Ferrari, it still has that engine feel and you also think of the roar,” Mr de Ambroggi said. “I don’t know how Ferrari solves this.”
Mr. Vigna is often asked this question, especially by long-time customers or Ferraristi. They seem to be channeling the late founder, Enzo Ferrari, who once broke down in the simplest of terms how he built some of the fastest cars on the planet: “I build engines and put them on wheels.”
Mr. Vigna’s EV pitch has a different ring to it. “The electric motor will not be silent,” he said. “There are ways to make sure that the feeling that comes from driving an electric Ferrari is the same as when you drive a hybrid or when you drive a thermal Ferrari.”
Battery life is another piece of the puzzle. Because Ferraris often sell for a higher price on the secondary market, concern about battery degradation and its impact on the car’s long-term value can be heightened by Ferraristi.
“The transition to EVs raises a lot of new issues for them in terms of how to maintain the vehicle,” said Stephen Reitman, automotive analyst at Bernstein.
Ferrari’s long-time partner SK On, a South Korean battery maker, will supply the components for the EV batteries, which Ferrari will assemble at the e-building, where it will also build the car’s electric motors and axles.
And then there’s the matter of price. Last month, Reuters reported that the car would cost at least 500,000 euros ($540,000). Mr Vigna pushed back on speculation, saying it was too early to talk about price.
Ferrari still follows its founder’s principle of producing a limited number of extremely expensive cars. Ferrari made fewer than 14,000 last year. Even with electronic building, production is not expected to increase much at first.
The limited numbers may explain why fans make the pilgrimage to Maranello hoping to catch a glimpse of a Ferrari, either at the company’s Formula 1 test track or near the red brick factory.
Knowing that demand is high, Mr. Vigna raised the base price of most models by more than 25 percent.
“Ferrari has consistently sold less than market demand, leading to a multi-year order book,” said Mr. Reitman, the Bernstein analyst. With a profit margin of nearly 30%, Ferrari’s business is more akin to that of a luxury brand such as Hermes or Rolex, analysts say.
Mr. Vigna is already thinking about how to market the new electric car. The target customer probably won’t buy the car for purely practical reasons or even to save the planet, he said, adding: “The emotional part of the brain drives the purchase.”
