Legacy Luxury Brand Enters EV Market

novel capability explore

Ferrari introduced its first electric vehicle concept named Luce, designed in collaboration with the creative agency LoveFrom.

This matters because it signals legacy luxury brands are not only adapting to climate-driven technological change but are also redefining luxury and performance standards in the electric era, reshaping supplier ecosystems and consumer expectations simultaneously.

Signal Analysis Investment Analysis Research Analysis Source

Signal Analysis

Tension

Ferrari aims to meet growing electric vehicle demand and sustainability goals while maintaining its brand's traditional luxury sports car identity and performance expectations; it faces technological challenges and customer skepticism about electric drivetrains replacing combustion engines.

Binding Constraint

Specialized battery technology and high-performance electric powertrain development that meet Ferrari's luxury and performance standards, along with high-quality, artisanal design capabilities to uphold brand prestige.

Who Benefits

Battery and electric motor suppliers specializing in high-performance applications; luxury design firms and creative agencies collaborating on EV innovations; suppliers of bespoke interior materials suitable for electric vehicles; premium EV charging infrastructure providers.

Who Loses

Traditional high-performance internal combustion engine component manufacturers; legacy luxury sports car segments slower to adopt EV technologies; fossil fuel vehicle suppliers and associated aftermarket services targeting Ferrari's customer base.

Mechanism

Introduction of Ferrari's electric vehicle → increased demand for ultra-high-performance batteries and powertrains → scaling of specialized EV component suppliers → innovation in luxury EV interior and exterior design collaborations → influence on consumer expectations for bespoke electric vehicles in the luxury segment → adjustment of luxury car market competition dynamics.

Exposure Pattern

Companies and suppliers deeply integrated with luxury electric vehicle design and specialized high-performance battery development; creative agencies partnering with luxury automakers on EV concepts; firms with over 70% revenue from high-end EV component production and luxury bespoke design services.

Larger Trend

Part of the broader shift of legacy luxury automakers transitioning toward electrification in response to tightening regulations and evolving consumer preferences for sustainable yet high-performance vehicles.

Historical Parallel

Comparable to how traditional luxury watchmakers incorporated digital smart features, blending heritage with new technology to maintain relevance; similarly, legacy automakers previously transitioned from purely performance-focused combustion sports cars to include hybrid variants, setting the stage for full electrification.

Investment Analysis

explore

Ferrari’s formal commitment to a fully electric model, following existing hybrid launches and collaborations with design/engineering partners, signals a true inflection in high-end automotive electrification. This pushes the supply chain—and creative collaborators—into the spotlight, especially those able to deliver both performance and luxury at the top end of the EV market. The shift may re-allocate value toward battery, powertrain, and bespoke materials suppliers targeting these premium launches.

Thesis Direction

If luxury automakers like Ferrari succeed in launching fully electric high-performance vehicles—alongside high-profile design partnerships—then suppliers specializing in ultra-high-performance EV batteries, electric motors, and luxury bespoke interiors stand to benefit from a step-change in demand. These launches necessitate not just new powertrains, but also artisanal materials, unique design languages, and compatible infrastructure, focusing value accrual on companies with deep exposure to the luxury EV specification tier. Companies with existing relationships or IP around high-performance EV components for luxury marques are most likely to see direct revenue impact as production approaches commercialization in 2025 and beyond.

Candidate Tickers

  • FREY (FREYR Battery) benefits from

    Focuses on advanced, high-performance battery cells specifically targeting the premium automotive sector; as a pure-play, a major luxury EV model win could be a large share of incremental revenue.

    FREYR is not yet dominant in autos, but its pursuit of high-end automotive contracts differentiates it from mass-market battery suppliers.

    Risk: If Ferrari or peers select established Asian battery giants for final contracts, or if FREYR faces production slippages, upside may not materialize.

  • APTV (Aptiv PLC) benefits from

    Derives over 50% of revenue from advanced electronics, electric powertrains, and connectivity, with historic traction among premium European OEMs; exposure is meaningful if luxury EV launches scale.

    Aptiv’s high-voltage solutions for supercars are less visible than its mass-market applications, making premium program wins disproportionately impactful.

    Risk: If Ferrari develops more in-house, or if Aptiv’s share is limited in final BOM, impact will be muted.

  • CSP (Cooper Standard Holdings Inc.) benefits from

    Receives significant revenue from automotive specialty materials and luxury-grade sealing systems used in custom interiors; bespoke EVs drive demand for advanced materials and noise/vibration solutions.

    While often seen as a mass-market supplier, Cooper Standard’s premium business for low-volume, high-margin cars is less widely recognized.

    Risk: Luxury EVs may use alternative or vertically integrated suppliers, or volumes could remain niche.

  • PRNA (Pininfarina S.p.A.) benefits from

    Design and engineering of high-end EVs is now a principal growth area, with recurring revenue from design/IP and close links to luxury makes like Ferrari and Battista; bespoke projects can constitute the bulk of design revenue.

    Revenue exposure is often project-based and spiky, which is unusual for an otherwise niche industrial design house.

    Risk: Design firms may get squeezed out by internal OEM teams, or project wins may not scale to ongoing production contracts.

Catalyst Timeline

medium term

The commercial launch and early orders for Ferrari’s fully electric vehicle, slated for 2025, will clarify which component and design suppliers won material contracts. Quarterly updates from affected suppliers in late 2024 through 2025 will likely surface program wins and associated revenue uplift.

Evidence

  • Ferrari unveiled the SF90 XX Stradale and SF90 XX Spider in June 2024, limited-edition models focusing on track performance and featuring significant aerodynamic and performance enhancements.
  • While not explicitly an EV, Ferrari's commitment to electrification is evident through its hybrid models like the SF90 XX and the upcoming fully electric model, expected to launch in 2025.
  • Pininfarina, an Italian car design firm, has partnered with luxury automakers to design EVs, including the Battista, an all-electric hyper GT.
  • BMW is collaborating with several companies, including Valeo, to develop automated parking solutions for EVs.

Open Questions

  • Which public suppliers have secured contracts for Ferrari’s first EV, and how significant are those contracts as a share of their revenue?
  • How quickly will luxury EV launches drive follow-on orders from other premium brands, versus remaining one-off showpieces?
  • Will legacy design and component partners retain their roles, or will Ferrari’s EV program shift toward new, vertically integrated solutions?
Research Analysis