Ferrari’s first fully electric car, called Luce, in a handout image obtained by Reuters May 25, 2026, after the luxury sports car maker unveiled the model.
Ferrari | Via Reuters
Ferrari‘s stock plummeted after it unveiled its first fully electric vehicle, which was criticized by the luxury carmaker’s former boss and even Italy’s transport minister.
The company’s shares fell more than 8% on Tuesday after the unveiling of the Luce, Ferrari’s first five-seater that priced at 550,000 euros, roughly $640,000. The Milan-listed stock, which briefly rose over 2% on Wednesday morning, closed the session marginally lower.
Auto analysts, however, downplayed the negative market reaction, saying it is “too early to be overly concerned.”
The company unveiled the Luce on Monday, when Ferrari CEO Benedetto Vigna told CNBC the launch was a “very, very important day” that symbolized “a new chapter” in the company’s history.
But many were critical of Luce’s unconventional design and some questioned whether the EV could dilute investment returns for the business.
Analysts at RBC Capital Markets noted investors’ concerns that “Luce’s design, which prioritizes aerodynamics over downforce, could weigh on residual values.”
“That said, recall that investors voiced similar concerns when the Purosangue was unveiled back in 2022. Since then, the model has become one of Ferrari’s bestsellers, with demand exceeding supply,” they said in a research note on Tuesday.
The Purosangue appeared to be a break from the firm’s longstanding vow never to build an SUV. The company called it an FUV: “Ferrari Utility Vehicle.”
“While the Luce’s design departs from Ferrari tradition, the company indicated that the driving experience remains true to the brand,” the RBC Capital Markets note said.
The analysts added that the company might limit sales volume of the Luce “to maintain exclusivity, though initial demand for the vehicle is a key indicator for investors to monitor. We reiterate that it is too early to be overly concerned, especially if the design can appeal to new customers (potentially in China).”
William Li, CEO of Chinese electric carmaker Nio, said Ferrari’s designs have always been leading in the market, adding that the Luce has its own “distinct characteristics.”
“You have to see it in on-site. A lot of times you can’t just simply watch the videos or pictures,” Li told reporters in Beijing on Thursday, according to a CNBC translation of his Mandarin-language remarks.
“I also saw the video of the [pope test driving the car]. Watching that versus other videos [gave me] a different feeling,” Li said, noting that “only when it moves can you feel it.”
How critics attacked the Luce
Customer deliveries are scheduled to begin in Q4. Ferrari said it had chosen to develop and manufacture all components in-house at its factory in Maranello, Italy. The design is by LoveFrom, an agency founded by former Apple design chief Jony Ive.
Former Ferrari chairman Luca di Montezemolo, who held various leadership positions in the automaker for decades until 2014 and now sits on the board of rival McLaren Group Holdings, said the Luce was a disgrace to the company’s storied history.
“I hope that they take off the prancing horse [logo] from that car,” he said on the sidelines of a business conference in Rome, according to Reuters.
Milan-listed shares of Ferrari over the last three months.
Ferrari declined to comment. McLaren manufactures competing supercars, has invested heavily in hybrid technology, and also competes with Ferrari in Formula 1.
Italian Deputy Prime Minister and Transport Minister Matteo Salvini also criticized the Luce, calling it “outrageously expensive.”
“From an aesthetic point of view, it speaks for itself… It looks like anything but a car from the Prancing Horse. And this is supposed to be ‘innovation’? Who knows what [Ferrari founder] Enzo Ferrari would say,” he wrote on X on Tuesday.
EV demand for luxury autos
Auto analysts at Citi said that, when luxury rivals such as Bentley, Lamborghini and Aston Martin have all delayed battery electric vehicle models, Ferrari’s Luce launch highlighted the risks of the BEV transition among super-wealthy clients.
“This has already had some impact on the valuation multiple, pressured also by lower 5-year EPS growth expectations. Nevertheless as Ferrari highlights, even outside of EU CO2 emission legislation, global demand for cars is splitting between ICE and BEV technology,” they said in a research note on Wednesday.
“Even Ferrari cannot buck that trend forever. Whether the LUCE timing and appeal solves the BEV transition issue for Ferrari at this time remains to be seen. Ferrari earnings will still be driven by its ICE products for the foreseeable future,” they added.
— CNBC’s Evelyn Cheng, Michael Wayland and Robert Frank contributed to this report.
Disclosure: CNBC is a sponsor of McLaren Racing.
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