Ferrari’s Stock Dips Following Launch of Electric Car
Shares of Italian luxury carmaker Ferrari dropped on Tuesday after the company introduced its first fully electric vehicle, the Luce. This move marks a significant shift in the brand’s traditional strategy. Former chairman Luca Cordero di Montezemolo expressed his discontent with electric cars, stating, “At least take the prancing horse out of that car.”
The unveiling took place at an event in Rome, with “Luce,” meaning “light” in English, being the model’s name. Ferrari explained that this name was meant to symbolize “clarity and direction” as it enters a new phase in its history.
Fans of the brand were quick to express their disapproval of both the design and the EV powertrain, leading to a 5% drop in stock prices during morning trading. Among the critics was Montezemolo, who hinted that sharing his true feelings could harm Ferrari’s reputation. He mentioned the risk of “destroying the myth” surrounding Ferrari and hoped that the iconic prancing horse would at least be removed from the electric vehicle.
The launch of the Luce shows a clear departure from Ferrari’s established design language. Interestingly, while Ferrari steps into the EV market, other luxury brands like Porsche and Lamborghini are scaling back their electric plans, citing sluggish demand among consumers. Many social media users started drawing comparisons between the Luce’s unremarkable appearance and the more basic electric vehicles already available.
Ferrari CEO Benedetto Vigna acknowledged the day as “very important,” claiming it marks the start of a “new chapter” for the company. He recognized concerns about whether the Luce would attract both loyal Ferrari enthusiasts and new buyers, stressing the importance of balancing technology with customer preferences.
“When you’re developing new technology, respect is key,” Vigna told CNBC. He emphasized that any new technology should be appropriately integrated into the vehicle’s design, suggesting that this model would indeed look different.
Despite the mixed reactions, Vigna seems optimistic that the Luce will draw new customers while keeping existing ones interested.
The Luce is notable as Ferrari’s first five-seater vehicle, boasting impressive specifications such as a 0 to 60 mph acceleration time of roughly 2.5 seconds and a top speed near 192 mph. The price tag is estimated at around 550,000 euros, which is roughly $640,000, with deliveries set to begin in the fourth quarter of the year.
Analysts speculate that the decline in stock prices could be attributed to various factors. Michael Field, chief equity strategist at Morningstar, mentioned the combination of criticism regarding the design and the current market trend known as “travel and arrive.” He pointed out that Ferrari’s stock had already experienced significant increases leading up to the launch.
“A lot of fans are disheartened by Ferrari’s move into the EV space, feeling it dilutes a supercar brand that has thrived on classic design and the power of internal combustion engines,” Field stated. He also raised concerns regarding the substantial R&D costs associated with developing EVs, which could impact investments negatively.
