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Ferrari (RACE) Introduces Innovative Battery Research Lab

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Ferrari N.V. (RACE - Free Report) has opened a new laboratory for the research of lithium battery cells as it prepares to launch its first fully electric supercar by the end of 2025. Headed by University of Bologna scientists, the facility will focus on analyzing solid-state batteries, fast charging, thermal charging and cell safety and efficiency.

Ferrari’s latest move highlights CEO Benedetto Vigna’s vision to coalesce tradition with technology.

Completion to make electric vehicles (EVs) is intensifying in the industry. In February, BYD Company Limited revealed a 1.68 million yuan EV to challenge Ferrari and Lamborghini. Although both Ferrari and Lamborghini have revealed hybrid models, they’re yet to release a fully electric vehicle.

The research lab, known as E-Cell Lab, will act as a catalyst in realizing RACE’s plan. The luxury automaker will share the research conducted in the lab with its main battery suppliers to improve the battery performance. These batteries are set to be assembled in Maranello, where Ferrari is establishing a new factory to manufacture electric and hybrid vehicles. The plant is slated to open in June. The research will also be shared with Ferrari’s technology partner NXP Semiconductors NV.

The needs of high-performance carmakers differ substantially from that of traditional carmakers. The high-performance automakers have to deal with issues like high temperature. In 2021, Porsche AG invested in Custom Cells GmbH, a German lithium-ion specialist, to manufacture batteries for its top-end EVs.

In March, Ferrari announced a collaboration with SK On to produce batteries for its electric supercars. SK On has been supplying batteries to RACE for the SF90 Stradale plug-in hybrid, which was revealed in 2019.

Zacks Rank & Other Key Picks

RACE currently carries a Zacks Rank #2 (Buy).

Some other top-ranked players in the auto space are Geely Automobile Holdings Limited (GELYY - Free Report) , Toyota Motor Corporation (TM - Free Report) and Allison Transmission Holdings, Inc. (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The earnings per share (EPS) estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for TM’s 2024 sales and earnings suggests year-over-year growth of 10% and 73.6%, respectively. The EPS estimates for 2024 and 2025 have improved $3.13 and $2.49, respectively, in the past 60 days.

The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings suggests year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimates for 2024 and 2025 have improved 67 cents and 71 cents, respectively, in the past 60 days.

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