Italian legacy automaker Ferrari, through its Chief Executive Officer, promised that its upcoming electric vehicle offerings would not be silent like other models available in the market today.
Ferrari EVs will roar with “emotion”
In an exclusive interview with CNBC’s Squawk Box on Tuesday, Ferrari CEO Benedetto Vigna announced that the luxury automaker’s impending electric vehicle will deliver the same “unique” experience as its iconic gas-powered cars. It includes the signature roar of Ferrari’s traditional sports cars, unlike the electric vehicles on the roads today.
“Electric cars are not silent. If you know the technology, you know you can do a lot of things also with electric cars.”
Ferrari CEO Benedetto Vigna
CEO Vigna announced that Ferrari is currently developing a prototype for its upcoming electric car, which it claims to be “far from silent.” He also noted that it plans to market its future EVs differently from Tesla’s approach.
“When we talk about luxury cars like our cars, we are talking about the emotion that we are able to deliver to our client, so we are not talking about functional cars like other EVs that you see on the road.”
Ferrari CEO Benedetto Vigna
Ferrari to launch its first all-electric car in 2025
Ferrari plans to officially launch its first-ever electric vehicle in the fourth quarter of 2025. It plans to open a new factory in Maranello, Italy, in June this year to produce the necessary electric motors, battery packs, and power inverters for its future electric vehicles.
Notably, Ferrari is not the only industry player that has simulated ICE-powered engine noise in electric vehicle technology. Some of the automakers include Hyundai and Dodge, which previously introduced EVs with fake engine noises.
“Automakers are responding to some enthusiasts’ worries that electric cars have no soul.”
Ed Kim, AutoPacific President and Chief Analyst (via Business Insider)
Stock growth
Ferrari shares surged nearly 29% this year, following a 59% increase in 2023. It also reported record-breaking earnings, with an annual net profit growth of 34% last year. It surpassed $1.08 billion (€1 billion) for the first time in history.
Research company CFRA recently demoted Ferrari’s stock to hold from buy due to the “massive run-up” this year to date.
“While we continue to consider the company one of the highest-quality names in the auto industry, with industry-leading gross margins (~50% in 2023), unparalleled pricing power, and a strong backlog due to the global strength of its luxury brand, the stock’s current valuation now appears to reflect these positives.”
CFRA Senior Equity Analyst Garrett Nelson said in a research note
Ferrari’s commitment to retaining the noise element of its vehicles as it joins the shift to electric vehicles is indeed remarkable. It can potentially attract traditional sports car fans to consider buying its future EVs.
