Ferrari Embraces Electric Future With New CEO

Benedetto Vigna to take over for interim CEO

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Jun 09, 2021
Summary
  • Benedetto Vigna joins Ferrari as CEO in September.
  • He brings first-hand knowledge of the semiconductor industry.
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On Wednesday, Ferrari NV (RACE, Financial) announced it has appointed Benedetto Vigna as its new CEO. Vigna will join Ferrari at the beginning of September upon his departure from STMicroelectronics NV (STM, Financial).

Vigna is currently President of ST’s Analog, MEMS (micro-electromechanical systems) and Sensors Group, which is the company’s largest and most profitable operating business since 2020. During his time at ST, Vigna helped to develop the screen-sensor technology that initially debuted in Apple Inc. (AAPL, Financial)’s iPhone 4 and is now widely used throughout smartphones and vehicles to detect motion change.

“We’re delighted to welcome Benedetto Vigna as our new Ferrari CEO. His deep understanding of the technologies driving much of the change in our industry, and his proven innovation, business-building and leadership skills, will further strengthen Ferrari and its unique story of passion and performance, in the exciting era ahead,” Chairman of Ferrari John Elkann said.

While Ferrari announced efforts to make a fully electric vehicle at the end of 2019, the company has remained slow to transition toward battery power. As hinted at by Elkann, the arrival of Vigna will allow Ferrari to further dive into new technological advances that have been present throughout the automobile industry for several years.

Hybridization has been Ferrari’s current focus with their second hybrid model, the first since the debut of the LaFerrari in 2013, reaching consumer hands for model year 2021. The company’s new SF90 model has led the charge to hybrid models as Ferrari plans for 60% of its fleet to feature hybrid power by 2022.

While the $500,000 SF90 model is by no means affordable for the masses, Ferrari has opened the door to new customers as there is no production limit for the car. In comparison, the LaFerrari was limited to 499 units sold worldwide.

In regards to their hybrid and electric efforts, Ferrari has fallen well behind the curve of the automobile industry by choosing to maintain its screaming V8 and V12 power plants. The new SF90 does offer drivers the ability to switch to electric power only with the car driven by the front axle, a feature missing from the LaFerrari, but it is limited to a 15 mile range.

In comparison, the majority of manufacturers already offer fully-electric options that boast ranges upwards of 300 miles. Ford (F, Financial) made headlines with both its F150 Lightning and Maverick models and Volkswagen AG (XSWX:VW, Financial)’s Porsche subsidiary has seen success with its blazing fast Taycan model.

The arrival of Vigna in September should breathe new life into Ferrari’s electric efforts and offer help navigating the ongoing semiconductor shortage. He brings with him “a profound sense of responsibility towards the extraordinary achievements and capabilities of the men and women of Ferrari, to all the company’s stakeholders and to everyone around the world for whom Ferrari is such a unique passion.”

On June 9, Ferrari stock was trading at $212.76 per share, down 2.77%, with a market cap of $52.74 billion. According to the GF Value Chart, the shares are trading at a modestly overvalued rating.

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Top gurus invested in Ferrari include Baillie Gifford (Trades, Portfolio), Jim Simons (Trades, Portfolio)' Renaissance Technologies and Daniel Loeb (Trades, Portfolio).

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure