Ferrari scales back electric ambitions as it unveils 1st EV

Ferrari scaled back its electric-car plans, following the lead of other automakers that have receded from the costly segment after failing to attract customers. About 20% of Ferrari’s 2030 model lineup will be fully electric, the company told investors Thursday at a capital-markets day event in Maranello, Italy. That’s down from the 40% the company forecast in 2022. The revision comes as Ferrari offers a glimpse of its first all-electric model, the Elettrica, later in the day in the lead-up to the EV’s debut next year. Ferrari will average four new launches annually over the five-year period, the company said. With the retreat on EVs, Ferrari will double to 40% the proportion of fully combustion cars it’s targeting for its 2030 lineup, while hybrids remain 40% of the powertrain mix. The renewed focus on engines extends the supercar maker’s reliance on the higher-margin models that have defined Ferrari for decades. Analysts have turned increasingly positive on Ferrari in recent weeks, with some anticipating a lowering of the EV targets. Investors would likely welcome such a move because Ferrari’s combustion portfolio has higher profitability, analysts at Deutsche Bank said in a September research note. Ferrari shares are little changed this year, as the company — which commands stock market multiples on par with Hermès International — feels the impact of the luxury downturn, tariff uncertainty and slowing sales in China. From 2022’s optimism to 2025’s reality The prior EV plan was announced in June 2022, when environmental concerns were higher on the agenda of carmakers and the shift to electric cars appeared imminent. Since then, the political climate has changed, with security and trade at the forefront. Still, the Elettrica marks a milestone for Ferrari, and executives said they were committed to bringing the company’s “unparalleled sportiness into the electric era without compromises, and ensuring clients have a differentiated offering to choose from.” On Thursday, Ferrari was set to release performance benchmarks and the technical underpinnings of the Elettrica, a car that “affirms our will to progress by uniting the discipline of technology, the creativity of design and the craft of manufacturing,” Executive Chairman John Elkann said in a statement. Ferrari also plans to announce financial targets at the Maranello event as it provides its strategy roadmap through 2030. New directions The Elettrica’s launch marks a departure for Ferrari and will test its ability to navigate jarring change in the automotive industry. Premium carmakers like Porsche and Mercedes-Benz Group have struggled with the electric transition, as wealthy buyers balk at switching over to plug-ins. Ferrari is also trying to regain momentum in China, where its sales have stagnated along with a broader luxury slowdown. Chief Executive Officer Benedetto Vigna has suggested EVs may pave the way for expanded sales to the market because they carry a lower tax burden. Mercedes and BMW have also lost ground in China amid fierce competition led by BYD and Xiaomi. BMW shares slid this week after it forecast weak sales in China and higher tariff costs. Other features of the Elettrica will be revealed in stages: the new model’s interior will be shown early next year, with the full car unveiled in spring. Pricing hasn’t been disclosed. By Daniele Lepido

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Ferrari scales back electric ambitions as it unveils 1st EV