Here’s What We Learned At the Unveiling of a $2 Million Electric Car
After the Aperol spritzes were poured and the VIP lanyards were distributed, the crowd at a warehouse in Manhattan’s Meatpacking District turned to a large draped object in the middle of the room.
After a speech and a dramatic video, two women pulled back a silken sheet to reveal a jet-like, silver vehicle. The car, never officially seen in the U.S. before the Tuesday night event, was the all-electric $2 million Pininfarina Battista.
Those possessing the requisite means were invited to order one on the spot—and there was one taker. (“We cannot disclose who,” a spokesman told Barron’s.)
Electric vehicles are coming of age. The number of models available to U.S. buyers has risen from the single digits at the start of this decade to closer to 50—not counting hybrids—as of the 2018 model year, according to auto industry data provider Edmunds. German auto maker Volkswagen (ticker: VOW.Germany) plans to launch 70 more battery-powered vehicles by 2025.
And while electric vehicles eschew gasoline engines, the market is following in the auto industry’s tradition of extreme stratification.
Today, you can get a Ford Fiesta for about $15,000; BMW (BMW.Germany) automobiles range from $30,000 to more than $100,000; ultraluxury cars like Ferrari (RACE) cost several hundred thousand dollars. At the upper end, hypercars like Bugatti’s Veyron retail for millions.
The surest sign of the electric vehicle market’s evolution has been its own journey from high-price roadsters to such mainstream models as General Motors’ Bolt, Nissan’s Leaf, and Tesla’s (TSLA) own Model 3.
Today, Tesla sells sedans and crossover vehicles that range from $35,000 to more than $100,000. Low-cost electric options, such as the one-seat, three-wheeled Solo from Electrameccanica Vehicles (SOLO), which costs around $15,000, are coming too. Other brands are filling in gaps and widening the options.
Electric vehicles have their own aspirational offerings too, though. The all-wheel-drive Battista—named for the company’s founder, Battista “Pinin” Farina—offers 1,900 horsepower and goes from 0 to 60 mph in under two seconds; it boasts a maximum top speed of 280 mph, though Pininfarina limits that to 217 mph for the road.
Speeds like those the Battista can attain require design details meant to combat turbulence, typically a bigger problem for airplanes than cars. “The most difficult part of the design was the aerodynamics,” Pininfarina design head Luca Borgogno told Barron’s.
If you order one today, you’ll get it in 2020 after it’s built to your specifications from carbon fiber, aluminum and leather materials in a town outside Turin. (Exactly how long does it take to build one? “I have no idea,” admitted Borgogno.) Pininfarina plans to make only 150 of them.
The manufacturing method and limited quantity means the Battista holds little financial impact for mass-market makers General Motors (GM), Ford (F), or electric-vehicle leader Tesla. It’s just a beautiful machine that can be admired as a feat of engineering—or, we suppose, driven home.
“There are things you can do with electric motors that you can’t do with internal combustion engine,” Pininfarina CEO Michael Perschke told Barron’s during a brief interview after the car’s unveiling. (“When you want 20% power you get 20% power,” explained German race driver Nick Heidfeld on Tuesday. “There is no lag, no engine misfiring.”)
Perschke, clad in a smartly tailored light blue suit, Italian scarf, and black Adidas sneakers, aimed some light jabs at Tesla on Tuesday: He said Pininfarina’s likely next vehicle, a crossover SUV that could cost some $250,000, will be aimed at Tesla Model X buyers who’ve craved more upmarket options.
Pininfarina was in New York to do more than sell cars. The company, bought by Indian manufacturer Mahindra & Mahindra (500520.IN) in 2015—the design shop of the same name is also owned by Mahindra, but runs separately—expects to raise money this year.
Perschke had visited several Wall Street banks during his trip to New York, explaining his company’s product strategy, brand positioning, and hopes for long-term profitability. “People absolutely want to know what they can expect from us,” he said, adding that the company will likely sell a “small” stake later this year.
There are a lot of things one could do with $2 million, the man working the coat check on Tuesday told Barron’s. That’s true, but consumers want what they want: Perschke told us that more than half of the U.S. allotment of 50 Battistas has already been spoken for, with each requiring a $200,000 deposit.
And it’s hard to dispute that they’re a pleasure to look at and sit in—even if it’s only for a few minutes.
Source: barrons
