Ferrari delays second EV model to at least 2028 because of weak demand: Reuters sources

Ferrari has delayed its second fully-electric vehicle model, initially planned for 2026, to at least 2028, citing a lack of sustainable demand for high-performance luxury EVs. This decision aligns with similar postponements and scale-backs by competitors like Lamborghini and Porsche, who are also experiencing soft demand for electric sports cars. Ferrari's first EV is still slated for a spring 2025 unveiling and October 2026 deliveries, with the delayed second EV model now considered a more critical component of the company's long-term EV strategy.

Analysis

Ferrari N.V. has postponed the launch of its second fully-electric vehicle model to at least 2028, a significant delay from the original 2026 target, due to what sources describe as a lack of "real, sustainable demand" and even "zero" current market interest for high-performance luxury EVs. This decision, marking the second delay for this specific model, highlights substantial challenges in the ultra-luxury EV segment, mirroring similar strategic adjustments by competitors like Lamborghini, Porsche, and Maserati, who have also experienced soft consumer demand. While Ferrari's first EV, reportedly priced over $500,000 and co-designed by former Apple Chief Design Officer Jony Ive, is still scheduled for customer deliveries in October 2026, it is viewed internally as a "low-volume, symbolic milestone." The now-delayed second EV model was considered the "real game changer" for Ferrari's EV strategy, intended for a production volume of 5,000 to 6,000 units over a five-year lifespan, a target currently unachievable given the cited lack of customer interest. The core issues hindering adoption include the heavy weight of EV batteries, their perceived inability to match the sustained power delivery of traditional combustion engines, and the absence of the iconic engine sound, a key selling point for Ferrari's clientele. Investors will be keenly awaiting Ferrari's new long-term business plan presentation on October 9 for clarity on its revised EV roadmap and strategies to address these market headwinds.

Key Decisions for Investors

• Investors should closely monitor Ferrari's October 9 long-term business plan presentation for insights into its recalibrated EV strategy, particularly regarding investment in EV technology and revised production timelines in light of subdued demand.
• The significant delay of the second EV model, deemed crucial for Ferrari's EV volume ambitions, signals potential headwinds for the company's electrification targets and may warrant a re-evaluation of long-term growth projections in this segment.
• Consider the broader trend of weakening demand for high-performance luxury EVs, as evidenced by Ferrari and its peers, which could impact the profitability and adoption rates across the niche automotive sector, potentially favoring manufacturers maintaining a strong traditional powertrain portfolio.