Ferrari has plans to sell an electric vehicle. The cost? More than $500,000.

Ferrari, the luxury Italian car manufacturer, is planning to make an electric vehicle that will cost more than $500,000, according to a Reuters report. 

The carmaker’s foray into the EV space comes as many consumers are eschewing fully electric vehicles in favor of cheaper hybrid or diesel cars, with an AAA survey finding 63% of consumers say they’re unlikely to buy an EV due to their higher prices and the lack of reliable charging infrastructure. 

But Ferrari may be betting there will be sufficient demand among the world’s wealthiest consumers for its pricey, clean energy vehicles. And priced at 500,000 euros ($535,000), the EV will also be considerably more expensive than Ferrari’s average first-quarter sale price of 350,000 euros ($376,000).

So far, most purchasers of EVs tend to be higher-income consumers, with one study finding that the majority are men with incomes of more than $100,000.

The automaker is preparing to open a plant in Maranello, Italy, dedicated to manufacturing the electric model, according to the report, which cited a source familiar with the matter. The plant will reportedly manufacture other Ferrari vehicles, including petrol and hybrid models. 

Ferrari did not immediately respond to CBS MoneyWatch’s request for comment. 

In April, Ferrari CEO Benedetto Vigna told shareholders that the “state of the art plant will assure us of flexibility and technical capacity in excess of our needs for years to come.”

Vigna had previously told CNBC that the company’s forthcoming EVs would offer customers the same unique experience Ferrari afficionados have become accustomed to.

The new vehicle is expected to hit the market toward the end of 2025, according to the Reuters report. While Ferrari is preparing an EV that’s pricier than its gas-engined models, other automakers are taking a different tack, with some cutting EV prices in an effort to boost wavering demand.