Ferrari shares plummeted following the unveiling of its first electric car, the Luce: what the market didn’t like
27 May 07:21
Italian sports car manufacturer Ferrari has unveiled its first all-electric vehicle—the Ferrari Luce. However, instead of market euphoria, the launch of the new model sparked a sharp negative reaction: the company’s stock price fell following the electric car’s debut.
According to CNBC, Ferrari shares on the Milan Stock Exchange fell by approximately 8%, while the company’s shares in the U.S. lost 5.3%, reports "Komersant Ukrainian"
Ferrari unveiled its first fully electric car
The new model was named Luce, which translates from Italian as “light.” Ferrari explained that the name is meant to evoke clarity, direction, and a new chapter in the company’s history.
The car’s premiere took place in Rome. For Ferrari, this is a symbolic moment, as the brand has been associated for decades with powerful gasoline engines, a roaring sound, classic design, and a sporty DNA.
The launch of its first electric vehicle was one of the company’s boldest moves in recent years.
What makes the Ferrari Luce special
The Ferrari Luce is not only the brand’s first electric car but also Ferrari’s first five-seater.
According to the manufacturer’s specifications, the model can accelerate to 60 mph in approximately 2.5 seconds. The top speed is about 192 mph.
The Luce is priced at around 550,000 euros, or approximately $640,000. Deliveries to customers are set to begin in the fourth quarter of the year.
Ferrari also reported that all components for the electric vehicle were developed and manufactured in-house in Maranello. The model was designed by LoveFrom, an agency founded by former Apple chief designer Jony Ive.
Why Ferrari’s stock fell
Despite the technological significance of the launch, the market reacted negatively. Analysts attribute the stock drop to several factors.
The first reason is the brand’s fans’ reaction to the design. Some Ferrari enthusiasts believe that the Luce strays too far from the company’s traditional image. For many, Ferrari is not just a car, but a symbol of the classic gasoline-powered supercar with an aggressive design and a distinctive sound.
The second reason is investors’ concerns about costs. Developing electric vehicles requires significant investment in technology, batteries, manufacturing, and new engineering. If the model does not generate sufficient demand, this could negatively impact Ferrari’s profitability.
The electric Ferrari has divided fans
Ferrari’s transition to electric vehicles has become a sore point for some of the brand’s fans. Critics believe that an electric car could blur Ferrari’s identity, which has been built for decades around internal combustion engines, an emotional sound, and classic sports aesthetics.
Former Ferrari chairman Luca di Montezemolo sharply criticized the Luce. According to CNBC, citing Reuters, he stated that the famous prancing horse logo should be removed from such a car.
Italian Deputy Prime Minister and Minister of Transport Matteo Salvini also publicly criticized the model, calling it too expensive and visually far removed from the traditional Ferrari image.
“Electric, insanely expensive (550,000 euros!), and, from an aesthetic point of view, speaks for itself… It looks like anything but a car from the ‘Prancing Horse’ series. And this is supposedly ‘innovation’? Who knows what [Ferrari founder] Enzo Ferrari would have said…,”
he wrote on X.
What Ferrari’s management says
Ferrari CEO Benedetto Vigna called the Luce presentation a very important day for the company. According to him, the launch of the first electric car opens a new chapter in the brand’s history.
Vigna emphasized that as Ferrari transitions to new technologies, it must maintain respect for the technology itself and for its customers. According to him, the electric car’s design must be distinct, as new technology requires a different approach.
The Ferrari executive also stated that the Luce could appeal to both existing customers and a new audience that previously did not consider Ferrari due to the lack of a fully electric model.
Why the launch of Luce is risky for the brand
Ferrari is entering the electric vehicle market at a challenging time. Some premium automakers, including Porsche and Lamborghini, have already revised or slowed down their electric plans due to weaker demand for luxury electric cars.
For Ferrari, the risks are even greater, as the brand has a very strong emotional legacy. Ferrari buyers often pay not only for speed, but also for the sound of the engine, the driving experience, the brand’s history, and status.
Therefore, the company’s first electric vehicle must prove that Ferrari can remain Ferrari even without a classic gasoline engine.
“The market has spoken”: what analysts are saying
Oddo BHF auto analyst Anthony Dick stated that the reaction to Ferrari’s stock was one of the sharpest he has seen due to a car’s design. In his words, “the market has spoken.”
Analysts point out that investors are evaluating not only the model itself but also the potential implications for the brand. If the Luce fails to be commercially successful, it could hurt Ferrari’s profitability and image.
At the same time, the model’s success could open up a new market for the company and attract customers looking for a premium electric supercar.
