Tesla Inc (TSLA) Could Soon Have Electric Sports Car Competition From Ferrari

Tesla Inc (NASDAQ:TSLA) has set the standard in electric vehicle performance, and its new second-generation Roadster promises to deliver neck-bending performance when it’s released some time in the next few years.

But it’ll also face competition from a perhaps unexpected source: Italian supercar maker Ferrari. CEO Sergio Marchionne announced this week that the company was working on its own all-electric sports car to compete directly against Tesla. CNBC has more details:

The auto executive, who also heads Fiat-Chrysler, told reporters at the North American International Auto Show that whatever Tesla has done with high-end electrics can be done by others in the industry.
The plan would be a significant change of direction for Marchionne and Ferrari. While the Italian carmaker equips some cars with hybrid technology, Marchionne once called the idea of a completely electric Ferrari “almost an obscene concept.”

While an all-electric Ferrari would be almost sacrilegious to many sports car purists, it’s a sign of the times that Ferrari is embracing the electric trend. After all, many countries will actually ban the sale of gas-powered vehicles within their borders over the next few decades, and electric motors have been proven to be even faster than their gas-powered counterparts.

Tesla’s P100D versions of its Model S and Model X deliver class-leading speed already, and the new upcoming Roadster promises to go 0-to-60 MPH in only 1.9 seconds — a new record for a production vehicle.

Tesla Inc shares were trading at $346.63 per share on Wednesday afternoon, up $6.57 (+1.93%). Year-to-date, TSLA has gained 11.33%, versus a 4.35% rise in the benchmark S&P 500 index during the same period.

TSLA currently has a StockNews.com POWR Rating of B (Buy), and is ranked #15 of 24 stocks in the Auto & Vehicle Manufacturers category.