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

      TL;DR: Ferrari's stock declined by 7% following the announcement of the Luce, its inaugural electric vehicle priced at EUR 550,000. The online criticism regarding the design of the five-seat hatchback, along with uncertainty in the luxury electric vehicle market, contributed to the decline.

      Ferrari's shares dropped as much as 7 percent during Monday's trading in Milan, reaching €290.55 and resulting in a loss of approximately £3 billion in the company’s market capitalization. This decline occurred shortly after the Italian automaker introduced the Luce, its first fully electric model, at an event in Rome.

      The Luce is a four-door, five-seat hatchback priced starting at €550,000, roughly equivalent to $640,000. It is the priciest production electric car globally, costing approximately three to four times more than a Porsche Taycan Turbo S, Lucid Air Sapphire, or Mercedes-AMG EQS.

      The vehicle's performance features are notable. It has four electric motors, one for each wheel, that together produce 1,036 horsepower. Ferrari claims it can accelerate from 0 to 60 mph in under 2.5 seconds, achieve a top speed exceeding 310 kph, and cover about 530 kilometers on a single charge from a 122 kWh battery pack. With an 800-volt system, it can undergo 350 kW fast charging, recharging the battery from 10 to 80 percent in approximately 18 minutes.

      The issue lies in the vehicle's design. Just hours after its launch, social media was flooded with comparisons to a Honda Accord, a luxury toaster, and a minivan reminiscent of an Apple Store. The Luce represents Ferrari’s first five-seater and its initial four-door hatchback, marking a significant shift from the sleek, aggressive forms that characterize the brand. Weighing over 2.2 tonnes, it is also the heaviest Ferrari ever made.

      The car was jointly designed by Jony Ive’s LoveFrom studio and industrial designer Marc Newson. Ive, who departed from Apple in 2019 after nearly 30 years of influencing the company’s hardware design, contributed a minimalist approach, resulting in an interior devoid of screens, with physical controls and analogue-style dials. The center console features Corning glass, and the steering wheel is made from recycled aluminum.

      Ferrari claims that about 95 percent of the Luce's components were specifically developed for this model. The company has filed 60 patents related to battery technology, axial-flux motors, and torque vectoring. An innovative sound system uses accelerometers and amplification—similar to an electric guitar—to create a sound distinctive to Ferrari. The Torque Shift Engagement system mimics engine braking to maintain the sensation of driving a combustion-engine vehicle.

      CEO Benedetto Vigna positioned the Luce as a complete reinvention rather than just an electrified version of a pre-existing model, instructing the engineering team to focus on Ferrari's essence rather than just electric technology. A new facility at the Maranello factory was constructed specifically for the production of electric and hybrid vehicles.

      However, market reactions indicate that investors remain skeptical. Analysts at Oddo BHF described this as the most significant stock reaction to a car design they had witnessed. Several analysts noted a “travel and arrive” pattern, where the stock had appreciated prior to the launch, and the reveal prompted holders to sell. The intensity of the backlash online adds complexity beyond typical profit-taking.

      The timing is challenging for the overall luxury EV sector. While Porsche advances with its electric Cayenne Coupe, Lamborghini has entirely canceled its Lanzador EV, with its CEO stating that current electric models fail to forge the emotional connection buyers seek. In the U.S., about a dozen EV models have been discontinued, as tariffs, lost tax credits, and import fees transform the marketplace. Ferrari is venturing into an electric sector from which other luxury brands are retreating.

      Pre-orders for the Luce commenced in March 2026, with deliveries anticipated in the fourth quarter of this year or early 2027. Ferrari has not revealed any order figures, but historically, the company has sold cars in limited numbers with long waiting lists. The sales trajectory of the Luce will depend on whether buyers share the market’s doubts or view the car more favorably in person.

      The underlying concern is whether Ferrari's brand can incorporate a five-seat, four-door electric hatchback without compromising its identity. Tesla is investing $25 billion this year pivoting towards autonomy and robotics, while stepping away from its luxury sedan and SUV models. In contrast, Ferrari is betting that its brand alone can support a $640,000 electric family vehicle. The stock decline on Monday suggests that the market is looking for concrete evidence before committing.