Rimac Group's Bold Pivot: Can Hybrid Tech Salvage Its EV Hypercar Dream?

The Rimac Group, once a trailblazer in electric hypercars, now faces a stark reality: its flagship Nevera model, designed to redefine electric performance, has struggled to meet sales expectations. With only 50 units delivered out of a planned 150, the Croatian automaker has shifted gears—literally. In a strategic pivot, it's now betting on hybrid combustion-electric systems, exemplified by the Bugatti Tourbillon, to counter market skepticism and shareholder pressure. The question is: Can this pivot reignite investor confidence, or is Rimac overcorrecting in a fast-evolving industry?

The Sales Slump: Why EV Hypercars Fell Flat

Rimac's troubles stem from a paradox in luxury automotive markets. While governments push for EV adoption, ultra-high-net-worth buyers—those willing to spend millions on a car—are drawn to nostalgia. CEO Mate Rimac admits that wealthy clients often prefer the visceral thrill of internal combustion engines (ICE), akin to their affinity for mechanical watches over smartwatches. This preference, paired with a softening EV market, left the Nevera, despite its record-breaking specs (2,107 hp, 0-60 mph in 1.72 seconds), underwhelming in sales.

The challenge is compounded by competition. Traditional powerhouses like Ferrari and Bugatti continue to dominate with ICE-driven models. Ferrari's tri-power strategy—combining ICE, hybrid, and fully electric vehicles—has kept it relevant, while Rimac's all-electric stance initially alienated a core customer base.

The Pivot to Hybrid: A Necessity or a Risk?

Enter the Bugatti Tourbillon, a hybrid marvel engineered by Rimac Technology. This hypercar pairs an 8.3-liter V16 engine with three electric motors, delivering 800 hp and a top speed of 445 km/h. The system's 800V architecture and silicon carbide inverters ensure efficiency, while its T-shaped battery—acting as a structural component—slashes weight. The Tourbillon isn't just a product; it's a signal to shareholders that Rimac is adapting without abandoning its tech edge.

The move makes strategic sense. By marrying ICE's emotional appeal with EVs' performance, Rimac can attract buyers who crave both legacy and innovation. Moreover, its Tier 1 supplier arm, Rimac Technology, is now monetizing its expertise. Deals with BMW and Porsche to supply batteries and eAxles highlight a shift toward B2B revenue streams, reducing reliance on volatile hypercar sales.

The Wider Play: Energy Storage and Autonomy

Rimac's pivot extends beyond cars. Its Rimac Energy division is building Battery Energy Storage Systems (BESS) for commercial and industrial clients, leveraging the same battery tech that powers its hypercars. Meanwhile, a €30 million investment in Verne, a Croatian autonomous mobility startup, positions it in the fast-growing urban tech space.

These moves de-risk the business. underscores its ambition to diversify beyond luxury vehicles. While Tesla's market cap fluctuations reflect broader EV market volatility, Rimac's focus on niche, high-margin sectors—like B2B electrification and autonomy—could offer steadier returns.

Investment Considerations: Risks and Opportunities

Opportunities:
1. Hybrid Tech Leadership: The Tourbillon's advanced systems could set a new standard for high-performance hybrids, appealing to buyers who want both ICE nostalgia and EV efficiency.
2. B2B Scalability: Rimac's partnerships with established automakers (e.g., BMW) provide a revenue floor, insulating it from hypercar market whims.
3. Energy Storage Growth: The BESS market is projected to hit $100 billion by 2030, offering Rimac a second growth engine.

Risks:
1. Market Niche Constraints: Even with the Tourbillon, hypercar sales remain a tiny, volatile market. A misstep could amplify losses.
2. Regulatory Uncertainty: Stricter emissions rules in Europe and China could undermine ICE's long-term viability, despite current buyer preferences.
3. Competitor Pressure: Ferrari and Porsche are already diversifying their portfolios, leaving less room for newcomers.

Verdict: A Necessary Evolution, but Execute with Precision

Rimac's pivot is a pragmatic response to market realities. By blending ICE's romance with electric innovation, it's addressing customer desires while maintaining its tech leadership. The B2B and energy storage plays add resilience. However, execution is critical. Shareholders should monitor two key metrics:
- Tourbillon Sales: The model's 250-unit run must prove demand for hybrid hypercars.
- B2B Revenue Growth: Progress in battery and autonomy deals will signal scalability.

For investors, Rimac represents a high-risk, high-reward play. Its Series D valuation ($2.2 billion) reflects potential, but success hinges on balancing innovation with market pragmatism. If Rimac can carve out a unique niche—combining luxury, electrification, and autonomy—it could become the Rolls-Royce of the next-gen mobility era. For now, it's a race against time to prove that hybrids, not just EVs, can be the future of the hypercar.