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Italian luxury automaker Ferrari is planning to build its first electric vehicle — which will reportedly cost more than $500,000.
Ferrari is preparing to open a plant that will produce EV models and increase the company's output by a third, Reuters reported on Wednesday, citing a source familiar with the matter.
Ferrari plans to launch the EV in late 2025, and its hefty price tag suggests the automaker is confident that sluggish demand and falling prices of mass EVs are unlikely to impact the luxury market.
According to the report, the minimum $535,000 price doesn't include extra features and personalization that could add an additional 15%-20% to the car's selling price. It's also well above the average selling price of Ferrari vehicles in the first quarter of this year, which was around $376,000, as well as rival luxury EV offerings.
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Ferrari is planning its first EV sports car that will reportedly cost at least $500,000. (Francesca Volpi/Bloomberg via Getty Images/Getty Images)
Ferrari plans to inaugurate the new plant in its hometown of Maranello in northern Italy on Friday.
Once the new plant is operational, it is expected to help Ferrari increase production capacity to around 20,000 cars a day, up from just under 14,000 last year.
While ramping up production could risk diluting the degree of exclusivity of the Ferrari brand, the luxury automaker has expanded before with its Purosangue SUV that was launched in 2022 and serves as a successful demonstration of how the company can move beyond its traditional two-seat sports cars.
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Ferrari's new plant will be located in its hometown of Maranello, Italy. (Manuel Romano/NurPhoto via Getty Images/Getty Images)
“Demand for Ferrari is growing and they have the space to meet it without compromising exclusivity,” Fabio Caldato, portfolio manager at Accomea SGR, a company that holds Ferrari shares, told Reuters.
Waiting lists for some Ferrari vehicles can exceed two years, and Caldato said the list “is not getting any shorter” and “being on the waiting list is itself a status symbol.”
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The Ferrari SF90 Stradale was the luxury automaker's first hybrid sports car. (Courtesy of Ferrari/Fox News)
Ferrari's new factory in Maranello will give it a new assembly line for gas-powered and hybrid cars, as well as components for hybrids and EVs.
Reuters reported that the new plant is expected to be fully operational in three to four months. Its source said Ferrari is in the process of developing a second EV model, though he added that the process is in the early stages and the company may not choose to increase total production to 20,000 vehicles per year in the short term.
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Ferrari's planned EV comes after the company launched the SF90 Stradale, a plug-in hybrid sports car, in 2019. The SF90 was the first Ferrari to feature a plug-in hybrid electric vehicle architecture that had an internal combustion engine integrated with two electric motors.
Reuters contributed to this report.