This browser does not support the Video element.
Tesla in 'self-drive' mode slams Into parked police car
A Tesla owner told police that he had engaged his vehicle’s "self-drive" mode when it crashed into a parked police cruiser.
null - Italian luxury automaker Ferrari is planning to produce its first electric vehicle — which will reportedly cost over $500,000.
Reuters reported Wednesday citing a source familiar with the matter that Ferrari is preparing to open a plant that will produce the EV model and lift the company's output by up to one-third.
Ferrari is planning to launch the EV in late 2025, and the hefty price tag suggests the automaker is confident that sluggish demand and falling prices for mass-market EVs are unlikely to impact the luxury market.
According to the report, the price tag of at least $535,000 doesn't include add-on features and personalization that can add an extra 15%-20% to the car's sales price. It's also well above the average sales price for Ferrari vehicles in the first quarter of this year, which came in at about $376,000, as well as rival luxury EV offerings.
Ferrari is planning to inaugurate the new plant on Friday in the automaker's hometown of Maranello in northern Italy.
The famous Ferrari prancing horse logo embellishes the hood of a red Ferrari on display at a Fourth of July classic car show in Santa Fe, New Mexico. (Photo by Robert Alexander/Getty Images)
Once the new plant is operational, it's expected to allow Ferrari to boost production capacity to about 20,000 after it delivered under 14,000 cars last year.
While the increased production could pose a risk by undermining the degree of exclusivity that the Ferrari brand holds, the luxury automaker has branched out before with its Purosangue SUV that was launched in 2022 and served as a successful demonstration of how the company can move beyond its traditional two-seat sports cars.
"There is an increasing demand out there for Ferraris, and they have room to meet part of it without compromising exclusivity," said Fabio Caldato, a portfolio manager at AcomeA SGR, which holds Ferrari shares, told Reuters.
Waiting lists for some Ferrari vehicles can exceed two years, and Caldato added that the list "is not getting any shorter" and that "being in the waiting list is in itself a status symbol."
Reuters contributed to this report.
GET UPDATES ON THIS STORY AT FOXBUSINESS.COM