Ferrari shares decline by 7% following the unveiling of the Luce electric vehicle.

      Ferrari's shares declined by 7% following the introduction of the Luce, its inaugural electric vehicle, which is priced at €550,000. The drastic shift in stock value was fueled by online criticism regarding the design of the five-seat hatchback and uncertainty surrounding the luxury electric vehicle market.

      In Milan trading on Monday, Ferrari's shares fell to €290.55, resulting in a loss of approximately £3 billion in the company's market capitalization. This drop occurred just a day after the Italian manufacturer launched the Luce at the Città dello Sport in Rome.

      The Luce, a four-door liftback accommodating five passengers, is the most expensive electric car available today, priced at about $640,000, significantly higher than competitors like the Porsche Taycan Turbo S, Lucid Air Sapphire, or Mercedes-AMG EQS.

      The vehicle's specifications are impressive. Equipped with four electric motors, one for each wheel, it generates a total of 1,036 horsepower. Ferrari claims it can accelerate from 0 to 60 mph in under 2.5 seconds, reach a top speed exceeding 310 kph, and offers a driving range of approximately 530 kilometers with its 122 kWh battery. Its 800-volt system allows for 350 kW fast charging, enabling the battery to charge from 10 to 80 percent in around 18 minutes.

      After the unveiling, social media was flooded with comparisons to a Honda Accord, a luxury toaster, and an Apple Store minivan. The Luce marks Ferrari's first five-seater and four-door hatchback, diverging significantly from the brand's traditional low and aggressive profile. Additionally, at over 2.2 tonnes, it is the heaviest Ferrari ever produced.

      Jony Ive’s LoveFrom studio and industrial designer Marc Newson collaborated on the vehicle's design. Ive, who departed from Apple in 2019 after nearly three decades, applied a minimalist perspective. The interior lacks screens, featuring physical controls and analogue-style dials. The center console is made of Corning glass, and the steering wheel is crafted from recycled aluminum.

      Ferrari states that around 95% of the Luce’s components were specially designed for this model. The company has filed 60 patents related to battery technology, axial-flux motors, and torque vectoring. An artificial sound system employs accelerometers and amplification, producing a sound that Ferrari claims is uniquely its own. The Torque Shift Engagement system emulates engine braking to maintain a traditional driving experience reminiscent of combustion-era cars.

      CEO Benedetto Vigna presented the Luce as a complete reimagining rather than simply an electrified version of an existing vehicle. His direction to the engineering team was to approach it from a Ferrari perspective instead of focusing solely on electric technology. A dedicated "e-building" has been constructed at the Maranello factory for electric and hybrid vehicle production.

      However, the market reaction indicates that investors remain unconvinced. Analysts at Oddo BHF noted this as the most pronounced stock response to a car design they had encountered. Several analysts mentioned a “travel and arrive” dynamic, where the stock rose in anticipation of the launch and the reveal prompted shareholders to sell. The intensity of the backlash online suggests a sentiment beyond standard profit-taking.

      This is a challenging time for the luxury electric vehicle sector. While Porsche is advancing with its electric Cayenne Coupe, Lamborghini has completely scrapped its Lanzador EV, with its CEO stating that current electric vehicles fail to evoke the emotional connection expected by buyers. In the US, many EV models have been discontinued due to tariffs, lost tax incentives, and increased import costs reshaping the market. Ferrari is entering an electric space that other luxury brands are retreating from.

      Pre-orders for the Luce began in March 2026, with deliveries anticipated in late 2026 or early 2027. Ferrari has not revealed order figures, but the company has a history of selling cars in limited quantities with extensive waiting lists. Whether the Luce will continue this trend hinges on whether customers align with or dismiss the market’s skepticism upon seeing the vehicle in person.

      A critical consideration is whether Ferrari's brand can accommodate a five-seat, four-door electric hatchback without compromising its core identity. Tesla is investing $25 billion this year to shift towards autonomy and robotics, consequently moving away from luxury sedan and SUV models. In contrast, Ferrari is banking on the belief that its name alone can justify the price of a $640,000 electric family car. The stock decline on Monday indicates that the market seeks tangible evidence before committing.