Ferrari owner says a new Tesla could be born out of energy transition wave

John Elkann says at some point in the future a big deal in the tech industry by Exor holding is likely

Ferrari chairman John Elkann says he sees potential for start-ups and tech in Italy. Reuters

John Elkann, the scion of Italy’s Agnelli clan, sees potential for a “new Tesla” to emerge from the current wave of energy transition at a time his family’s Exor holding is investing in start-ups, including some focused on cleaner sources.

“There’s a lot of excitement in energy transition, and not just for automotive, at some point I guess you’ll have a trillion-dollar company coming from here,” Mr Elkann, 46, said in an interview.

Energy transition is a theme that’s already caught the Agnellis’ attention, and among its roughly 70 start-up investments, the holding has bets on everything from a new-generation nuclear power generator to a unicorn company focused on converting natural gas flares into Bitcoin power.

Exor’s early-stage capital branch has invested about €1 billion ($970 million) in start-ups over the past five years, as the Agnellis diversify their traditional automotive holdings: the biggest stake in Stellantis and control of Ferrari.

Exor, whose net asset value totalled about €31bn at the end of June, earlier this year cashed out $9bn through the sale of reinsurer PartnerRe to France’s Covea. The holding now plans to focus on expansion in health and luxury, as well as on technology, which, Mr Elkann says, isn’t an alternative to other industries but a complementary area of focus.

“With the mobility sector having started its most radical transformation in over a century, we started getting involved in the tech industry five years ago, as well working with the venture capital world,” Mr Elkann said.

Mr Elkann, speaking ahead of the Italian Tech Week forum in Turin, where he serves as organiser, also gave some hints on Exor’s investment strategy.

“I can’t rule out at some point in the future a big deal in the tech industry by Exor,” Mr Elkann said. “But that’s not our current focus, and we much prefer a step-by-step approach to accompany start-ups.”

The Agnellis recently rebranded Exor Seeds, their early-stage arm, as Exor Ventures, to underscore a commitment to venture capitalism. The holding last year tapped Diego Piacentini, a veteran of both Apple and Amazon, as chairman of the unit.

Mr Elkann reaffirmed the billionaire family’s commitment to Italy, highlighting how it’s working with young entrepreneurs. Exor is also pushing its Vento programme, which is set to provide up to €150,000 in financing to dozens of early-stage Italian start-ups.

The Agnelli clan leader said he sees potential for start-ups and tech in Italy, where the family’s Fiat once dominated a manufacturing-heavy industrial landscape.

Now, Italian unicorn companies are emerging, especially in FinTech, including payments specialist Scalapay and mobile digital platform Satispay, which earlier this week completed a €320m round of fund-raising that values it at more than €1bn.

For Exor, recent bets include US-based biotech Altos Labs, which focuses on cellular rejuvenation programming. On the real estate side, the holding earlier this year pumped about €100m into Italian digital company Casavo, which offers instant solutions for buyers and sellers of property.

Some of Exor’s other bets are clearly linked to the current energy transition trend, with the holding recently investing in London-based nuclear startup Newcleo, a company looking at ways to cut development and production costs for nuclear power so it can play a bigger role in the transition away from fossil fuels.

Another Exor play on transition is Crusoe Energy Systems, a Denver-based company that works with energy companies to capture surplus gas, converting by-products into electricity to power data centres and crypto-mining operations.

But even with an ever-more diverse investment portfolio, Exor is still making bets on transportation.

Exor paid $200m in 2020 for a stake in ride-share specialist Via Transportation, which designs software for transit systems to allow them to provide on-demand alternatives to fixed route service.