Ferrari experienced a sharp sell-off on Tuesday after unveiling its first fully electric four-door model, the Luce. Investors and commentators signalled disappointment with the car’s design and raised doubts about how the vehicle fits with Ferrari’s long-standing identity as a maker of high-performance combustion-engine sports cars.
The Luce, a four-door, five-seat vehicle priced at €550,000 ($640,000), represents a major stylistic and strategic shift for the marque. The model was developed with creative input from former Apple design chief Jony Ive and his studio LoveFrom. Ferrari said the car will begin deliveries in the fourth quarter and will target new markets and buyer profiles, such as China and wealthy technology-sector entrepreneurs in hubs like Silicon Valley.
Market reaction was pronounced. At around 1425 GMT, Ferrari’s shares listed in Milan were down nearly 7.8%, while the company’s New York-listed shares had fallen by about 4.6%.
Investors who hold Ferrari stock cited broader worries alongside the immediate aesthetic response. Fabio Caldato, a portfolio manager at AcomeA SGR, which is a shareholder in Ferrari, described the move as a combination of an ‘‘aesthetic disappointment’’ and deeper unease about expanding the brand into electric models. He said the share reaction reflected those broader market concerns and cautioned that the new product might appeal only to a niche of customers.
On social media and among enthusiasts, comments were largely negative about the vehicle’s appearance. The public backlash extended to long-standing figures in Ferrari’s history. Luca Cordero di Montezemolo, who served in leadership roles at Ferrari for more than two decades before leaving in 2014, called the model a betrayal of Ferrari’s history and said, on the sidelines of a business conference in Rome, "I hope that they take off the prancing horse (logo) from that car."
Ferrari’s strategic objective with the Luce is to broaden its customer base. The company is explicitly targeting markets where electric vehicles already make up a growing share of premium sales, and it is courting a new generation of wealthy buyers including technology entrepreneurs. Ferrari buyers typically own more than one vehicle from the brand, reflecting a collector-driven and affluent clientele.
Nonetheless, the icy reception in the market highlights key challenges for Ferrari as it attempts to expand into electrification while preserving exclusivity and pricing power. Luxury automakers remain uncertain about demand dynamics for high-end electric vehicles, and Ferrari faces the task of balancing product diversification with the expectations of its traditional customer base.
The Luce’s launch follows earlier decisions at Ferrari to manage the timing of its electrification roadmap; last year the company postponed plans for a second electric model until at least 2028. The company has framed the Luce as an entry into the fully electric segment that could reach buyers in new geographies and demographic segments, but investor appetite for the shift was unclear as shares slid on the unveiling.
($1 = 0.8590 euros)