Ferrari Shares Slide 7.8% after €550K Luce EV Debut
RACE•Ferrari shares plunged as much as 7.8% in Milan after unveiling its debut Luce electric sedan priced at €550,000, marking the stock’s worst one-day drop since October. The four-door EV delivers 1,050 horsepower, 0-100 kph in 2.5 seconds and over 530 km range, raising R&D cost and branding concerns.
1. Stock Reaction
Shares in Ferrari dropped sharply in Milan trading, falling as much as 7.8% before narrowing to a 6.5% decline by midday London, marking the steepest single-day loss since October. The selloff underscores investor anxiety over the company’s pivot into high-cost electric vehicles and its potential impact on near-term profitability.
2. Luce Specifications and Pricing
The Luce is a four-door, five-seat electric sedan priced at €550,000, with each wheel powered by its own motor for a combined output of just over 1,050 horsepower. Ferrari claims a sprint from standstill to 100 kph in 2.5 seconds, a governed top speed above 310 kph and a range exceeding 530 kilometers on a full charge.
3. Market and Analyst Sentiment
Industry observers have criticized the Luce’s design for resembling mainstream EVs rather than a luxury supercar, comparing its aesthetics to a mass-market sedan and raising questions about brand dilution. Analysts warn that the sizeable R&D investment required to develop Ferrari’s first full EV may be difficult to recoup through premium pricing alone.
4. Financial Outlook and CEO Comments
Ferrari reported first-quarter revenue of €1.85 billion earlier this month and reaffirmed full-year guidance, despite a 31% share price decline over the past year. CEO Benedetto Vigna emphasized the importance of delivering emotion to the driver and balancing advanced electric technology with Ferrari’s heritage design principles.
