Ferrari’s First EV Arrives, But Its Electric Drive Slows Down

<img decoding="async" class="lazyload size-full-width wp-image-1592486" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" data-src="https://observer.com/wp-content/uploads/sites/2/2025/10/GettyImages-2239548417.jpg?quality=80&w=970" alt="A black Ferrari car on the assembly line.” width=”970″ height=”647″ data-caption=’A view of the production line inside the Ferrari factory in Maranello, Italy, on Oct. 9, 2025. <span class=”lazyload media-credit”>TAIMAZ SZIRNIKS/AFP via Getty Image</span>’>

Yesterday (Oct. 8) in Maranello, Italy, luxury automaker Ferrari lifted the hood on its first all-electric vehicle, the Elettrica, after five years in development—while simultaneously halving its electric ambitions. The new car marks Ferrari’s long-awaited entry into the EV market, but also underscores the company’s reluctance to fully embrace an electric future at a time when the EV boom has lost some of its early luster.

The Elettrica, in development since 2020, is expected to officially launch in October 2026 with a price tag estimated to exceed $540,000. Ferrari revealed only the powertrain, confirming that the Elettrica will feature a quad-motor setup—one motor per wheel—powered by a 122 kWh battery pack. Built on an 800-volt architecture for faster charging, the vehicle will reportedly reach a top speed of 193 mph, deliver up to 1,000 horsepower, and achieve about 330 miles of range under the European WLTP cycle.

The new all-electric supercar will be built on a platform developed in-house and produced at Ferrari’s “e-building” in Maranello, where the company is headquartered. The facility will manufacture electric motors, battery packs and inverters for Ferrari’s future EVs.

Though those plans are now less certain. Soon after the Elettrica’s debut, Ferrari released quarterly earnings with disappointing guidance that sent its stock tumbling, marking what could become its worst trading day since listing on the Milan stock exchange in 2016.

Despite raising its long-term revenue target to around €9 billion ($10.4 billion) by 2030, Ferrari said only 20 percent of its lineup will be fully electric by then—down from its previous goal of 40 percent. Hybrids are expected to make up another 40 percent, with the remaining 40 percent continuing to use internal combustion engines. The company added that it does not plan to release a second EV until at least 2028, citing weak demand for high-performance electric cars.

While Ferrari framed the scaled-back targets as a response to customer preferences, broader trends tell a different story. Global EV demand has cooled, even as 2025 is shaping up to be one of the strongest years for U.S. EV sales, boosted in part by now-expired federal tax incentives.

Ferrari’s late entry into the EV race isn’t necessarily a problem, according to Stephanie Brinley, associate director of AutoIntelligence at S&P Global. “The transition to an EV-dominant market is a long-term process,” Brinley told Observer via email. “It is about being able to come to market with a compelling product at the right time. Finding that sweet spot has always been a product challenge. The twists and turns of electrification and EV adoption have only complicated the process of finding that position.”

For Ferrari, she added, the key is staying true to the brand’s DNA. “Ferrari buyers will want a Ferrari first, an EV second,” Brinley said. “For Ferrari buyers, it’s not primary transportation. If they are interested in EVs, they can or will also have EVs in the stable. That can work for or against Ferrari’s EV ambitions.”

Ferrari isn’t alone in pulling back. Other luxury automakers—including Volvo, Mercedes, Porsche and Bentley—have also slowed their electrification plans amid softer demand, tariffs, and global uncertainty. All-electric brands like Tesla, which just announced cheaper Model Y and Model 3 versions, and Lucid have cut prices to move inventory. While Ferrari buyers aren’t motivated by tax credits or savings, they do value exclusivity—and the brand’s identity has long been tied to the sound and spirit of its internal combustion engines.

As Brinley noted, “Consumer demand has not kept up with the demands of regulatory change, but it has not vanished and will continue to grow. Timing entry and ensuring profitability are difficult.”

The Elettrica’s success will likely depend less on its range or price than on whether it can deliver the emotional rush Ferrari owners expect. If the car can replicate the visceral thrill of a Ferrari through software, vibration and sheer performance, it could redefine what it means to be a supercar maker. If not, the company risks alienating its wealthy loyalists—customers who prize Ferrari’s sound, speed and unmistakable signal of status as much as its engineering prowess.