Investing.com — Shares of fell 6.1% on Tuesday after the Italian luxury carmaker officially launched the Luce, its first fully electric vehicle, at a ceremony in Rome the previous evening.
The four-door Luce was developed with the help of former Apple design chief Jony Ive and his collective LoveFrom, and is Ferrari’s first five-seater.
Deliveries of the Luce, priced at €550,000 ($640,000), are due to begin in the fourth quarter of 2026, with CEO Benedetto Vigna describing it as “the result of five years of work.”
The market’s sharp negative reaction reflects investor concern that the car’s significant visual break from Ferrari’s signature sporty aesthetic — and its entry into a segment where demand is proving elusive — represents a meaningful brand risk.
The highly anticipated model marks a departure from the aesthetic of typical Ferraris and comes even as other luxury car manufacturers, notably Porsche and Lamborghini, have scaled back on plans to launch their own EVs due to weak demand.
Lamborghini has abandoned plans to launch fully electric models in the near term and shifted focus towards hybrids, citing weak appetite for high-end electric supercars, while Porsche has also reduced its EV targets after softer demand, particularly in China and the US.
Adding to the pressure, Morgan Stanley analyst Edouard Aubin had already lowered his firm’s price target on Ferrari to EUR 330 from EUR 357, maintaining an Equal Weight rating, a move that had pre-conditioned cautious sentiment heading into the launch.
Ferrari had also previously walked back its own EV ambitions: rival Lamborghini canceled its first full-electric vehicle, citing low demand, reinforcing the narrative that the luxury EV market remains deeply uncertain.
From a macro perspective, European STOXX 600 was flat at 631.92 points, while Milan opened down 0.3%, with the broader European market weighed down by US Secretary of State Marco Rubio stating that negotiating a deal with Iran could take a few days, tempering expectations for imminent peace.
US equities were modestly positive, with the S&P 500 up 0.4%, the Dow up 0.6%, and the NASDAQ up 0.2%, providing no meaningful macro lift for Ferrari’s sharp single-stock decline.
Taken together, today’s move reflects a classic “sell the news” dynamic amplified by genuine strategic uncertainty.
The Luce was revealed at a time when several premium automakers are slowing their electric vehicle plans amid weakening demand in the luxury market, making Ferrari’s bold counter-move a high-stakes gamble in the eyes of investors.
With the stock already trading well below its 52-week high of 447.5 and now hitting a session low of 285.8, the market is clearly demanding more evidence that the Luce can preserve — rather than dilute — the Ferrari brand’s legendary exclusivity and pricing power.
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