Ferrari races into new territory with line of $500,000 electric cars – Washington Examiner
Despite the resurgence of gas-powered vehicles, Ferrari, an iconic Italian luxury car brand, is gearing up to launch its first electric vehicle (EV), which is expected to carry a price tag of around $500,000. As detailed in a recent Reuters report, unlike some other car manufacturers who are reducing their prices, Ferrari is maintaining its high price strategy, targeting the ultrawealthy market segment. The projected price for this new electric model is around $535,000, significantly higher than current prices for gas-powered cars offered by the brand.
Despite a resurgence of gas-powered cars, Ferrari, the Italian luxury car brand, plans to release its first electric vehicle, valued at a staggering $500,000.
The car company, known for its exclusivity, will double down on its famously high price tags and bet on the pockets of the ultrawealthy while others have begun lowering their prices, according to Reuters.
The new EV, projected to cost around $535,000, will be a steep incline from the price of gas-powered vehicles in this year’s first quarter. Traditional vehicles usually clock in at about $375,000, taking into account the 15% to 20% increase that surfaces in customization. The $535,000 attached to Ferrari’s electric vehicle is a calculation before any additional personalizations.
With an EV, Ferrari will enter a market amid stagnation. Declining demand, coupled with a rush of new sellers, has driven many, including the industry’s favorite son Tesla, to slash its prices. Ferrari has taken a different approach, bolstering its line of “Veblen goods,” or products that signal status through high prices.
In anticipation of its new EV line, Ferrari will build a new manufacturing plant in Maranello, Italy. This factory could reportedly raise the yearly output from 14,000 vehicles to 20,000.
For years, Ferrari’s exclusivity has been a dominant factor in its great success. Buyers often spend years on waiting lists hoping to receive a specific model. With an increase in yearly output, the long-standing brand image of inclusivity could be diminished. Despite this, Ferrari hopes to find success in the EV customer segment, mostly made up of men making over $100,000 a year.
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But Ferrari has not abandoned its famously fast, gas-guzzling supercars. The new facility will also produce a greater supply of these traditional vehicles. While gambling with this shift in brand focus, Ferrari does not want to jeopardize its established, high-octane success.
The new EVs are projected for release in 2025, promising to maintain the level of craftsmanship and flash long associated with the Ferrari name.
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