Shares of luxury car manufacturer Ferrari tumbled sharply on Tuesday morning, just after the company launched its first fully electric vehicle, the Luce. The introduction took place in Rome at the Vela di Calatrava, a venue symbolically selected for its significance.
Ferrari describes the name “Luce,” which means “light,” as representative of clarity and direction. This new model signifies a significant shift in Ferrari’s approach, as it moves away from traditional designs. Notably, other luxury brands like Porsche and Lamborghini have recently reduced their electric vehicle plans due to weak consumer interest.
On Tuesday, Ferrari’s stock fell by 6.3% before recovering slightly, marking a nearly 27% decline over the past year. CEO Benedetto Vigna referred to the launch of the Luce as “a very, very important day,” symbolising a new chapter for the brand.
When asked how Ferrari would balance the expectations of both new and existing customers, Vigna highlighted the importance of respect for new technology, suggesting that fresh designs must reflect this change.
The Luce is Ferrari’s first five-seater and accelerates to 60 miles per hour in about 2.5 seconds, reaching a top speed of approximately 192 miles per hour. It is priced at around 550,000 euros, or about $640,000, with deliveries scheduled to begin in the fourth quarter of this year. All parts are designed and made in-house in Maranello, while the design was crafted by LoveFrom, founded by former Apple design chief Jony Ive.
Analysts believe the stock’s decline stems from disappointment over the company’s embrace of electric vehicles, with concerns that this move could dilute the brand’s supercar status, traditionally based on classic design and powerful combustion engines. Concerns about high research and development costs have also prompted apprehension among investors about future returns.
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