Why Ferrari is still betting on its EV, even as Lamborghini backs off

In this article RACE-IT Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 4:02 04:02 Why Ferrari and Lamborghini are taking different paths on EVs Autos High-end luxury sports car makers, like the rest of the auto industry, are starting to figure out how big demand is for electric vehicles. Lamborghini has said there is nearly no market for electric supercars. But fellow luxury carmaker Ferrari is pressing ahead with an EV, although it has also downsized its EV plans. The global electrification push has put automakers in every segment in a bind as they try to figure out how invest in the technology favored by some overseas regulators, while pleasing customers who are either skittish or uninterested in EVs. Ferrari doesn't have an EV on the market yet, but its first model, called Luce, is expected to be open for orders later this spring. The automaker, which is publicly traded, only sells about 14,000 cars per year, but its market value is greater than the combined assets that make up Lamborghini's parent company, German auto giant Volkswagen Group . that's in large part because Ferrari vehicles carry high price tags, starting in the low hundred thousand dollar range and running up into the millions. "Ferrari has been one of the most successful companies in Europe, period," said RBC Capital analyst Tom Narayan. "Not even in autos, just in general. It's been a smashing success." Ferrari has backed off some of its EV ambitions. At its capital markets day in October, the company said it now expects EVs to make up 20% of its sales — cutting a previous target in half. And it's still going to make internal combustion vehicles, including its famous 12-cylinder engines. "I just think what Ferrari is doing is just hedging its bets and trying to cater to a customer demographic that definitely exists," Narayan said, "while at the same time satisfying its core constituency, which is the DNA of Ferrari, its internal combustion engine cars. It can kind of walk and ch...