Ferrari’s long-awaited entry into the electric vehicle market has triggered an immediate backlash from investors and enthusiasts, sending the luxury automaker’s market value sharply lower following the unveiling of its first fully electric model, the Luce.
The Italian brand saw its stock tumble after introducing the EV, with shares dropping roughly 8 percent on the Milan stock exchange while U.S.-listed shares also declined significantly. The selloff erased billions from Ferrari’s valuation in less than a day as criticism mounted over both the car’s design and what many see as a dramatic departure from the company’s heritage.
Despite the sharp decline, Ferrari’s stock had climbed steadily in the days leading up to the reveal as investors anticipated the company’s first all-electric vehicle. Shares rose from around €283 to €309 during the previous week before falling back to approximately €284 following the launch event. While the company technically remains near its pre-launch position, the sudden reversal highlighted investor uncertainty surrounding Ferrari’s transition into the EV era.
The Luce represents one of the most radical projects in Ferrari’s modern history. Rather than relying on outside engineering partners, Ferrari developed the vehicle’s core electric technology internally. The company then turned to LoveFrom, the design collective led by former Apple design chief Jony Ive, to shape the styling of the car.
That design decision quickly became one of the most divisive aspects of the launch. Critics argued the Luce strays too far from Ferrari’s established identity, particularly because it takes the form of an electric saloon instead of a traditional low-slung sports car powered by a combustion engine. Concerns have also emerged that Ferrari risks weakening the exclusivity and emotional appeal that has defined the brand for decades.
The negative reaction arrives during a difficult period for Ferrari shares overall. The automaker previously suffered an even steeper decline last year after presenting more conservative long-term growth projections than investors expected. Over the past 12 months, Ferrari’s stock has fallen more than 30 percent.
Still, analysts remain cautiously optimistic about the company’s future. Ferrari continues to hold a significant order backlog, and some investors view the stock’s current trading range as attractive compared with previous highs.
While the Luce’s styling has divided opinion, its performance figures remain firmly in supercar territory. The electric model produces more than 720kW and 990Nm through four electric motors and is capable of accelerating from 0 to 100 km/h in just 2.5 seconds.
Whether those numbers will be enough to convince traditional Ferrari loyalists remains uncertain as the company attempts to balance innovation with the legacy that made it one of the world’s most recognizable automotive brands.
Shawn Henry