What's Happening?
Ferrari has announced the features of its first fully electric production vehicle, the Ferrari Elettrica, set for delivery starting late next year. The unveiling coincides with Ferrari's revised financial forecasts for 2025, projecting revenues to exceed 7.1 billion euros, up from previous estimates of over 7 billion euros. Despite global tariffs on foreign car imports to the United States, Ferrari aims for net revenues of 9 billion euros by 2030, with an EBITDA of at least 3.6 billion euros and a margin of 40%. The company plans to maintain a diverse product lineup, with 40% internal combustion engines, 40% hybrid, and 20% electric vehicles by 2030.
Why It's Important?
Ferrari's move into the electric vehicle market marks a significant shift for the luxury sports carmaker, traditionally known for its internal combustion engines. The introduction of the Ferrari Elettrica could attract new buyers and expand Ferrari's market presence. However, the company's financial outlook has been met with skepticism, as shares fell significantly on both the Milan and New York Stock Exchanges. This reflects broader industry challenges in transitioning to electric vehicles, as demand and production costs continue to fluctuate. Ferrari's strategy to manufacture critical components internally, including the battery system, highlights its commitment to innovation and sustainability.
What's Next?
Ferrari plans to reveal the design of the Ferrari Elettrica in the spring, with deliveries beginning late next year. The company will focus on maintaining the sports car feel by incorporating technology to simulate traditional engine sounds and sensations. As Ferrari navigates the electric vehicle market, it will likely face competition from other luxury automakers scaling back their electric vehicle production plans. The company's conservative financial projections suggest a cautious approach to growth, potentially impacting investor confidence and market performance.
Beyond the Headlines
Ferrari's decision to use 75% recycled aluminum for the chassis and body shell of the Elettrica underscores its commitment to reducing carbon emissions, saving 6.7 tons of CO2 per vehicle. This move aligns with broader industry trends towards sustainability and environmental responsibility. The integration of Formula 1 technology into the Elettrica reflects Ferrari's dedication to maintaining its brand identity and performance standards, even as it transitions to electric vehicles.
