Ferrari shares tumbled sharply on Tuesday after the iconic Italian luxury carmaker unveiled its first fully electric vehicle, the Luce, in a high-profile event in Rome, revealing deep investor concerns about the transition to electrification and potential dilution of the brand’s legendary combustion-engine heritage.
The Maranello-based company described the Luce, Italian for “light”, as evoking “clarity and direction,” but the sleek, futuristic design has drawn mixed reactions, with many longtime enthusiasts expressing disappointment on social media. Shares of Ferrari were down as much as 8% intraday before paring some losses to trade around 6.5% lower by midday in London.
The stock has now fallen more than 31% over the past 12 months, reflecting broader pressures on the luxury sector amid softening demand and the costly pivot to electric vehicles.
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Ferrari CEO Benedetto Vigna called the launch “a very, very important day” for the company, marking the opening of “a new chapter” in its storied 77-year history. Addressing concerns about alienating core customers while attracting new ones, Vigna told CNBC’s Charlotte Reed: “Look, when you do a new technology, you need always to keep in mind a word that is called respect. Respect of the technology, because when you have a new technology, you need to make sure that that technology is properly represented in the design, so the design must be different.”
He added that the company respects the diverse needs of its clientele: “Ferrari drivers will have the same sensation” as with traditional models, though he acknowledged the electric powertrain produces a different sound. “What is important is the emotion that is being given to the driver.”
The Luce, Ferrari’s first five-seater, can accelerate from 0 to 60 mph in approximately 2.5 seconds and reach a top speed of around 192 mph. It is priced at roughly €550,000 (about $640,000), with customer deliveries expected to begin in the fourth quarter of 2026. The vehicle was developed entirely in-house in Maranello, with design entrusted to LoveFrom, the agency founded by former Apple design chief Jony Ive.
This collaboration has been positioned as a fusion of Ferrari’s performance DNA with cutting-edge aesthetic and technological sophistication.
Market and Fan Backlash
Analysts attributed the share price reaction to a combination of “design hate” and the classic “buy the rumor, sell the news” dynamic, as Ferrari’s stock had rallied significantly in anticipation of the launch.
Michael Field, chief equity strategist at Morningstar, told CNBC: “Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power. From an investment perspective, many investors had feared the development of an EV model, on the basis that the research and development costs are materially high, putting a lot of pressure on the brand to recoup these, and potentially diluting investment returns for the business.”
Anthony Dick, an auto analyst at Oddo BHF, described the market’s response as one of the sharpest reactions to a new car design he had seen.
“The market has spoken,” he said.
Social media reaction was swift and largely negative. On X, users compared the Luce’s blue-and-black color scheme to the far more affordable Nissan Leaf. One user quipped about buying “the new Ferrari Luce interior without the exterior,” while others used AI tools like ChatGPT and Grok to generate alternative, more aggressive “batmobile-style” designs they felt better suited the Ferrari brand.
Ferrari’s move comes as other luxury manufacturers, notably Porsche and Lamborghini, have scaled back aggressive EV timelines due to softer-than-expected demand for high-end electric vehicles. This raises questions about whether Ferrari can successfully attract new buyers without alienating its traditional clientele, who prize the visceral experience of naturally aspirated V12 and V8 engines.
The company is betting that the Luce will expand its customer base while maintaining emotional appeal. However, industry analysts are concerned that failure to deliver on performance, sound engineering, or brand cachet could damage Ferrari’s exclusivity and long-term pricing power — key drivers of its historically high margins.
Despite today’s selloff, Ferrari remains one of the most valuable and profitable luxury carmakers globally, with exceptional brand strength and pricing power. The Luce launch is a calculated risk in a rapidly electrifying luxury segment. Analysts believe it’s too early to rule it out, and eventual success could open new markets and customer demographics, particularly in regions with strict emissions regulations.
Failure, however, could erode the brand’s aura and pressure future profitability.
Vigna’s emphasis on “respect” for both technology and customers suggests Ferrari is acutely aware of the tightrope it is walking.