Ferrari has launched its first electric car, but the market response has been lukewarm. Shares dropped 2.8% in premarket trading on Tuesday after the Italian supercar maker revealed the new model at a Rome event. Early reactions from both social media and investors have been far from enthusiastic. Here’s what the Luce says about Ferrari’s electric vehicle strategy and why Wall Street remains doubtful.
The new car is called Luce, which means ‘light’ in Italian, and starts at 550,000 euros. Jony Ive, the former chief design officer at Apple, helped design it. Ferrari says the Luce can go from zero to 60 miles per hour in under 2.5 seconds and has a top speed of over 190 miles per hour. It also features a system that makes the electric motor sound like a traditional engine, but this addition was criticized by some Ferrari collectors last year, with one describing it as almost a gimmick.
The design received even stronger reactions. Many on social media pointed out that the Luce looks very different from Ferrari’s classic supercars, which is a big deal for a brand known for its iconic style. The Luce is also Ferrari’s first five-seater, marking another break from the company’s usual approach.
Ferrari had already scaled back its electric vehicle plans at a Capital Markets Day in October, but it still aims for 20% of its cars to be electric by 2030. The stock was already down 27% over the past year going into Tuesday, so there was little room for a launch that might split Ferrari’s loyal fans.
