Home Featured Ferrari (NYSE:RACE) is on a Slow Road to Electric

Ferrari (NYSE:RACE) is on a Slow Road to Electric

by Paul Ebeling

#Ferrari #EV #electric #V12


A Key reason why Ferrari is not so keen is that the heavy battery will affect the supercar experience”— Paul Ebeling

Italian luxury automaker Ferrari, which makes many of the world’s fastest cars, has been stuck in the slow lane as it transitions to electric vehicles. As it is trying to overcome the power disadvantage of EV relative to today’s already very powerful internal combustion engines.

At last month’s investor day, Ferrari executives promised a new era, with the launch of its 1st all-electric sports car in Y 2025. However, for now, the internal combustion engine is still the core aspect of its research. Unlike other rivals, Ferrari has not provided a roadmap for electrification of all its models, although brands such as Volkswagen’s Bentley and Volvo are targeting Y 2030. A Key reason why Ferrari is not so keen is that the heavy battery will affect the luxury car experience.

Ferrari makes some of the fastest cars on the road, but the luxury Italian automaker is taking the slow lane to an electric future as it tries to overcome the technology’s disadvantages against today’s powerful fossil fuel engines. Though executives promised a new era, with the first fully electric Ferrari in Y 2025.

But for now, combustion engines remain the noisy heart of what it does.

The carmaker has told investors it is targeting a core profit (EBITDA) margin of 38-40% in 2026, Vs 35.9% in 2021.

Its line-up could also grow to at least 17 models by 2026 from 12 today. But most new models will, at least initially, have a combustion engine – including its 1st SUV, the Purosangue, powered by its trademark huge 12-cylinder engine though some may be hybrids.

A Zero-emission future poses the same challenges for Ferrari as it does for rivals – EV batteries weigh hundreds of kilograms, which affects aerodynamics and handling, and can’t match the sustained power and throaty roar of a massive combustion engine.

To solve those expensive challenges, Ferrari is researching solid state batteries, which could theoretically improve battery power, as well as hydrogen fuel cells and synthetic fuels, both of which face an uncertain future.

European Union countries agreed this week to an effective ban on new fossil-fuel car sales, but will assess in 2026 whether hybrid vehicles and synthetic, or CO2-neutral, fuels could comply with that goal.

If it becomes law, the EU proposal would also provide small carmakers like Ferrari some wiggle room to negotiate their own intermediate targets until Y 2036. At that point, they would face the EU requirement to sell only Zero-emission cars, which would kick in for bigger carmakers in Y 2035.


Ferrari currently has 4 plug-in hybrids in its line-up

Have a super, prosperous GP racing weekend, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.