Ferrari's shares fell by 7% following the unveiling of the Luce electric vehicle.

      Ferrari's stock dropped 7% following the introduction of the Luce, its inaugural electric vehicle, priced at €550,000. The decline was fueled by online criticism of the five-seat hatchback's design and uncertainties surrounding the luxury EV market.

      On Monday, Ferrari shares fell by as much as 7% during trading in Milan, reaching €290.55 and erasing approximately £3 billion from the company's market capitalization. This sell-off occurred just a day after the Italian automaker presented the Luce, its first fully electric car, at Città dello Sport in Rome.

      The Luce, a four-door, five-seat liftback, is priced at €550,000 (around $640,000), making it the most expensive production electric vehicle globally, priced about three to four times higher than models like the Porsche Taycan Turbo S, Lucid Air Sapphire, or Mercedes-AMG EQS.

      The vehicle’s specifications are not under scrutiny. Equipped with four electric motors—one for each wheel—it delivers a total of 1,036 horsepower. Ferrari claims it can accelerate from 0 to 60 mph in less than 2.5 seconds, reach a top speed exceeding 310 kph, and offer a range of approximately 530 kilometers thanks to a 122 kWh battery pack. Its 800-volt architecture enables 350 kW fast charging, meaning it can charge from 10% to 80% in about 18 minutes.

      The issue lies in the design. Shortly after the reveal, social media was flooded with comparisons to a Honda Accord, a high-end toaster, and a minivan akin to an Apple Store's. The Luce marks Ferrari’s first five-seater and its initial four-door hatchback, a significant shift from the brand's signature low, aggressive profiles. Additionally, at over 2.2 tonnes, it is the heaviest Ferrari ever produced.

      The design was a collaboration with Jony Ive’s LoveFrom studio and industrial designer Marc Newson. Ive, who departed Apple in 2019 after nearly 30 years molding the company's hardware, incorporated a minimalist style. The interior features no screens, physical controls, analogue-style dials, a Corning glass center console, and a steering wheel made from recycled aluminum.

      Ferrari claims that roughly 95% of the Luce’s components were specifically developed for this vehicle, filing 60 patents related to battery technology, axial-flux motors, and torque vectoring. An artificial sound system mimics the sound of an electric guitar using accelerometers and amplification, creating a sound Ferrari considers uniquely its own. Additionally, a system called Torque Shift Engagement mimics engine braking to maintain the feeling associated with traditional combustion engine driving.

      CEO Benedetto Vigna presented the car as a complete reimagining rather than a mere electrification of existing models, instructing the engineering team to focus on Ferrari first, rather than electric technology. A new "e-building" was constructed at the Maranello factory specifically for electric and hybrid vehicle production.

      However, market reactions indicate that investors remain unconvinced. Analysts at Oddo BHF described this as the most significant stock reaction to a car design they have seen. Many believe there was a "travel and arrive" mentality, where stock prices had risen in anticipation of the launch, prompting holders to sell upon the reveal. The intensity of the online backlash adds a dimension beyond mere profit-taking.

      The timing is also challenging for the wider luxury EV market. While Porsche is advancing with its electric Cayenne Coupe, Lamborghini has completely canceled its Lanzador EV, with its CEO stating that current electric vehicles fail to deliver the emotional connection that buyers seek. Additionally, a dozen EV models have been discontinued in the US as tariffs, lost tax incentives, and higher import costs reshape the market landscape. Ferrari is entering an electric segment that other luxury brands seem to be retreating from.

      Pre-orders for the Luce are set to open in March 2026, with deliveries anticipated in the fourth quarter of this year or early 2027. Ferrari has not shared details on order volumes, but the company is known for selling its cars in limited quantities with extended waiting lists. Whether the Luce will follow this precedent hinges on whether potential buyers align with the market's skepticism or perceive the car differently in person.

      The critical question remains whether Ferrari's brand can accommodate a five-seat, four-door electric hatchback without compromising its identity. Tesla is investing $25 billion this year to focus on autonomy and robotics, moving away from luxury sedans and SUVs in the process. Conversely, Ferrari bets that its brand alone can substantiate a $640,000 electric family vehicle. Monday’s stock decline suggests the market is seeking proof before committing.