Ferrari shares fell sharply on Tuesday after the luxury carmaker unveiled the Luce, its first fully electric vehicle. The launch marks a major shift for the Maranello-based company, which built its image around high-performance petrol engines and limited-production sports cars.
The Ferrari Luce arrives as demand for luxury electric vehicles remains uneven. Several rivals have slowed or adjusted EV plans, while investors now weigh whether Ferrari can expand into electric cars without weakening its core brand identity.
Ferrari introduced the Luce in Rome as a four-door, five-seat electric grand tourer. The name means ‘light’ in Italian, and Ferrari said the model represents a new direction for the company’s future product line.
Chief Executive Benedetto Vigna called the launch a ‘very, very important day’ for Ferrari. He said the model opens ‘a new chapter’ in the company’s history, while also stating that Ferrari must respect both the technology and its customers.
The Luce costs about €550,000, or nearly $640,000. Customer deliveries are expected to begin in the fourth quarter of 2026. The car uses four electric motors, delivers more than 1,000 horsepower, and has a top speed above 310 kilometers per hour. Ferrari also said the car can travel more than 500 kilometers on a full charge.
Ferrari developed the model with LoveFrom, the design agency founded by former Apple design chief Jony Ive. The company also chose to develop and build key components in-house in Maranello, a move aimed at keeping control over quality, service, and long-term value.
Ferrari shares fell more than 6% after the launch, with the Milan-listed stock extending recent weakness. The stock has also lost ground over the past year, as investors reassess growth expectations for luxury automakers.
Analysts linked the reaction to concerns over design, valuation, and electric vehicle demand. One market view described the move as a case of investors buying into the launch before selling once the product arrived.
Michael Field, chief equity strategist at Morningstar, said some Ferrari fans see the EV shift as a risk to the brand’s identity. He said many believe the move could dilute a supercar image built around ‘classic design and raw, combustion-engine power.’
He also noted that investors worry about the cost of developing an electric model. Research and development spending can place pressure on returns, mainly when demand across the wider luxury EV market remains uncertain.
Anthony Dick, an auto analyst at Oddo BHF, said the market reaction was unusually sharp for a car design. He said, “the market has spoken,” pointing to concerns around brand equity and profitability if Luce fails to attract enough buyers.
The Luce does not follow the traditional Ferrari shape. Its larger body, five-seat cabin, and electric platform set it apart from the company’s familiar two-seat sports cars. That change has fueled debate among fans, collectors, and investors.
Vigna defended the design while discussing the model’s electric technology. He said, “Look, when you do a new technology, you need always to keep in mind a word that is called respect.”
He added, “Respect of the technology, because when you have a new technology, you need to make sure that that technology is properly represented in the design, so the design must be different.”
Ferrari says the Luce can still offer emotion to drivers, even without a combustion engine. Vigna said the car gives ‘the same sensation’ as a typical Ferrari, while its sound comes from the electric system.
However, the launch arrives at a difficult time for premium EVs. Porsche and Lamborghini have already adjusted electric plans amid softer demand. Ferrari now faces the task of selling a high-priced EV while keeping petrol and hybrid buyers close.
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