Ferrari isn't keen on bucking the trend and using battery power inside its ultra performance and iconic sports cars just yet. And yet, the time to give electric energy a close consideration may be now rather than later. This is the observation of a team at Morgan Stanley that believes that if Tesla can extract impressive performance with its significantly more affordable offerings, Ferrari could use also battery power in its vehicles to boost its share value.
Share value of Ferrari has seen a significant jump in the four years since it came out of the FCA fold. Yet, the way forward could also depend on whether the car maker chooses to go the electric way. "We believe the ultimate outcome of Ferrari’s transition to EVs may be the #1 driver of the share price over the next 3 to 5 years and one which we continue to engage with management on very closely in the quarters to come," a note from a team at Morgan Stanley to clients reportedly reads, as per Electrek.
(Also read: Gas-guzzling Ferrari and Porsche cars face
The same note also seeks to make a case in terms of savings if Ferrari does make use of battery power. "The potential savings Ferrari could realize moving from ICE to EV are very significant. We estimate the average Ferrari could reduce cost of power unit from roughly $95k for today ICE car today to $50k for a Ferrari EV," it reportedly reads. "The savings of approximately $45k/unit is worth nearly 1,400 basis points of margin to the company’s sports car business."
While it may make a whole lot financial sense to seriously consider battery power, Ferrari up until now has steered clear of the new technology.
Ferrari's chief marketing and commercial officer Enrico Galliera recently said in an interview to Autocar UK that no EV could be expected from his company for at least five years, effectively putting to rest rumours of patent filing. (Read more here)
Ardent fans of Ferrari and advocates of electric mobility can, however, take heart from the fact that the car maker has done U-turns in the past. For instance, Ferrari had said it has no plans of going the SUV way but then announced its Purosangue SUV is set to break cover in 2021.
Will the same be true of its plans - or the lack of - of going the electric way? Time will tell.