Exclusive: Ferrari delays second EV model to at least 2028 because of weak demand, sources say

Ferrari has delayed its second fully-electric vehicle model from 2026 to at least 2028, citing a lack of demand for high-performance luxury EVs; this decision aligns with similar postponements or scaling back of EV ambitions by other sports car manufacturers like Lamborghini and Porsche due to weak consumer interest and challenges related to battery weight and power. Ferrari's first EV is still slated for unveiling in stages starting October 2024, with deliveries expected in October 2026, while the delayed second EV model is considered a more critical component of the company's long-term EV strategy.

Analysis

Ferrari (RACE.MI) has postponed the launch of its second fully-electric vehicle (EV) model from the initially planned 2026 to at least 2028, primarily due to a reported lack of demand for high-performance luxury EVs. Sources indicate this is the second delay for this model, underscoring significant market headwinds where current demand for electric sports cars is described as "non-existent" or "zero." While Ferrari's first EV, priced above $500,000 and co-designed by Jony Ive, remains on schedule for an October 2024 unveiling and October 2026 customer deliveries, it is considered a low-volume, symbolic model. The delayed second EV is viewed internally as a more critical component of Ferrari's long-term EV strategy, intended for a production volume of 5,000 to 6,000 units over a five-year lifespan, which is currently unachievable due to insufficient customer interest. This strategic adjustment mirrors actions by other luxury sports car manufacturers; Lamborghini (Volkswagen unit) delayed its first EV to 2029, Porsche scaled back EV plans amid soft sales, and Maserati (Stellantis) cancelled its electric MC20. The challenges cited include the absence of traditional engine acoustics, the substantial weight of EV batteries, and perceived limitations in sustained power delivery compared to fossil-fuel engines. Ferrari is scheduled to present its new long-term business plan to investors on October 9, which should provide further clarity. The sentiment surrounding this development for Ferrari (RACE) is strongly negative, reflected by a per-ticker sentiment score of -0.7.

Key Decisions for Investors

• Investors should critically assess Ferrari's EV transition timeline and its potential impact on medium-term growth, particularly given the cited weak demand in the high-performance luxury EV segment.
• Closely monitor Ferrari's investor presentation on October 9 for updates on its revised EV strategy, R&D adjustments, and how the company plans to address the challenges of battery technology and consumer preferences in the luxury EV space.
• Consider the broader implications of a cooling luxury EV market, as evidenced by similar delays and scale-backs from competitors, which may necessitate a re-evaluation of long-term sales forecasts for Ferrari's electric models.
• Evaluate the potential for increased capital expenditure or R&D write-offs related to EV development if market conditions do not improve, and weigh this against the continued strength of Ferrari's traditional internal combustion engine vehicle sales.