Market Reaction to New EV
Ferrari's stock price experienced a sharp drop following the unveiling of its first fully electric vehicle, the Luce. Shares fell almost 8% in Milan trading before recovering slightly to a 6% decline. This reaction suggests investor uncertainty regarding the new direction for the Italian supercar maker. The company was valued at €56 billion prior to the launch.
Design and Specifications
The Luce, designed in partnership with former Apple design chief Jony Ive, features a minimalist aesthetic. The vehicle has a starting price of $640,000 and a range of 329 miles thanks to its 122 kilowatt hours battery capacity. Its four motors allow it to accelerate from 0 to 100km/h in 2.5 seconds, reaching a top speed of over 310km/h (193mph).
Divergence From Tradition
Analysts have voiced concerns about whether the Luce's design aligns with Ferrari's established sportscar heritage. Pierre-Olivier Essig, the head of research at AIR Capital, described the Luce as resembling "a mix between a Honda Accord EV and Tesla 3." Essig added, "We are lost in translation with Ferrari’s new strategy.” The Luce is the first Ferrari with five seats and only the second with four doors, potentially targeting wealthy families rather than traditional sportscar enthusiasts. Ferrari's other four-door model is the Purosangue, an SUV launched in 2022.
Ferrari's Defense
Ferrari said the Luce EV design was "simplified and rationalised in service of the driving experience" and emphasized that it was creating an "entirely new Ferrari." CEO Benedetto Vigna stated, "We are convinced that a company demonstrates its leadership when it has the courage to dare and to take on the challenge of new technologies. Ferrari Luce was born precisely from this challenge, offering our unprecedented vision of electrification.” The Luce was developed in partnership with LoveFrom, the studio founded by Ive after his tenure at Apple, where he led the design of the iPhone, MacBook, and Apple Watch.
Electrification Strategy
Ferrari aims for a 2030 lineup consisting of 40% internal combustion engine models, 40% hybrids, and 20% fully electric vehicles. This represents a shift from previous plans in 2022, which envisioned 40% electric, 40% hybrids, and 20% petrol models by 2030. Despite the electric shift, the Luce incorporates elements to appeal to traditional enthusiasts, such as a motor sound amplified through speakers, intended to mimic the sound of a petrol engine.
Broader Market Context
The unveiling of the Luce comes as competitors like Porsche and Lamborghini scale back their EV ambitions, citing weak demand. The broader European stock market experienced a downturn, snapping a six-day winning streak, due to concerns about US-Iran tensions. Investors can watch upcoming sales figures to see if Ferrari's new direction resonates with consumers.
For example, Ferrari's previous plan aimed for 40% electric vehicles by 2030, which has now shifted to only 20% fully electric models.