Ferrari shares plunged on Tuesday, with investors and critics reacting coolly to the Italian luxury sports car maker’s new Luce electric car, questioning whether it stayed true to the brand’s identity.
The four-door, five-seater family car, which costs €550,000, represents a radical change for the prancing horse brand. It was developed with the help of former Apple design director Jony Ive and his LoveFrom collective.
Fabio Caldato, portfolio manager at AcomeA SGR, which holds Ferrari shares, told Reuters that the stock reaction reflected broader market concerns. “Ferrari is being penalized for an aesthetic disappointment, which adds to significant concerns over the expansion of its range to include electric models,” he said.
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Many of the comments on social media were also negative, with the appearance of the vehicle being criticized.
‘It doesn’t look like a (Ferrari) at all. Is this what is considered ‘innovation’? Who knows what (company founder) Enzo Ferrari would say,’ Italy’s Deputy Prime Minister and Transport Minister Matteo Salvini wrote in X.
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First fully electric car
Unveiled on Monday night, the Luce marks Ferrari’s entry into the all-electric vehicle segment, an important milestone for a luxury car maker traditionally associated with high-performance combustion engines and their distinctive sound.
Luca Cordero di Montezemolo, who held various leadership roles at Ferrari for more than 20 years before a turbulent departure in 2014, said the new model was a betrayal of Ferrari’s history.
‘I hope they remove the prancing horse (logo) from that car,’ he said on the sidelines of a business conference in Rome.
Focus on China
Luce, whose name derives from the Italian word for ‘light’, is expected to begin shipping in the fourth quarter. It is aimed at new markets, including China, where electric vehicles represent a growing share of premium car sales.
Ferrari is also targeting a new generation of wealthy buyers, including technology entrepreneurs in hubs like Silicon Valley, as it seeks to broaden its appeal beyond its traditional customer base.
‘We maintain a rational stance and assume that this new product can attract a niche market of customers’, said Caldato, from AcomeA.
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Ferrari buyers typically own more than one Ferrari vehicle, reflecting its wealthy, collector-oriented customer base.
The market’s cool reaction highlights the risks Ferrari faces as it tries to preserve its exclusivity and pricing power while navigating a broader industry shift toward electrification.
Luxury automakers continue to face uncertainty regarding demand for high-end electric vehicles. Ferrari last year postponed plans for a second electric model until at least 2028, according to Reuters.
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