Ferrari expects its sales of electric and hybrid vehicles to make for 80% of its total sales by 2030. The luxury sports car manufacturer also promised to launch “even more unique” vehicles as it relies on partners to fund the costly transition to zero-emission driving.
As the company presented its new business strategy, chairman John Elkann stated, “Everything we do will always focus on being distinctively Ferrari.” The use of electrification “will allow us to make even more unique cars.”
Ferrari will use suppliers for non-essential parts or software, as an operating system, to decrease costs, according to CEO Benedetto Vigna.
The issue for Ferrari, like other sports car manufacturers, extends beyond simply investing in electric models to achieve high performance because current electric vehicle (EV) batteries cannot match the sustained power of combustion engine sports cars.
Ferrari sells wealthy customers an emotional experience centered on the throaty roar of its powerful engines, much like its competitors. Ferrari needs to make sure its high-net-worth customers and investors are on board as it transitions to electric.
The Italian carmaker, whose vehicles start at about 210,000 euros ($219,282.00), may find it difficult to stand out in the crowd of EVs that are all expected to accelerate quickly.
Meanwhile, Ferrari will present its first-ever sport utility vehicle in September, powered by its gas-guzzling trademark 12-cylinder engine.
Ferrari will introduce its first electric model in 2025 as one of 15 new cars between 2023 and 2026, according to Vigna.
Ferrari predicts that in 2025, 5% of sales will be made up of entirely electric cars, and in 2030, 40%. Hybrid car sales should increase to 55% in 2025 from 20% in 2021 before falling to 40% in 2030.
In a new assembly line at its facility in Maranello, Italy, Ferrari, according to Vigna, would build its own electric motors, inverters, and battery modules while outsourcing non-essential components.
Ferrari will not develop an operating system for EVs in order to save money. Other automakers, notably Tesla and Mercedes, argue that exclusive operating systems are necessary to run cars, manage wireless upgrades, and collect information on driver preferences and behaviors.
“I will never build a Ferrari operating system, I would be foolish,” Vigna told investors. “You have to focus on the areas where you can be the best.”
In order to research the next generation of high-energy-density solid-state batteries, Ferrari is collaborating with four partners in Europe and Asia on battery components.
Ferrari stated that by 2026, it will invest 4.4 billion euros while generating core earnings of 2.5–2.7 billion euros. The adjusted core earnings forecast for Ferrari for 2022 is 1.65-1.70 billion euros.
The carmaker expects a cumulated free cash flow of 4.6-4.9 billion euros from 2022 to 2026.
Ferrari’s cost estimates, according to Kepler Cheuvreux analyst Thomas Besson, sent a “clear bullish signal,” but he highlighted that officials avoided discussing production quantities.
“But the direction is clear,” Besson wrote. “Electrification is required but will not change the DNA of the company and its products.”