Ferrari Shares Hit Bottom After Ferrari Luce
Ferrari introduced its first fully electric model, Luce. Details about Ferrari’s new electric vehicle, which has lost its shares due to design and cost concerns.
Luxury car manufacturer Ferrari introduced its highly anticipated first fully electric model, Luce, at an event held in Rome. The vehicle, which draws attention with its name meaning “light” in Italian, symbolizes the beginning of a new era in the history of the brand.
Following the introduction, Ferrari shares lost approximately 8 percent in value on the Milan stock exchange and around 4 percent on the US stock exchange. The company’s shares on the Milan stock exchange have fallen by more than 32 percent in the last 12 months.
Technical details of the electric Ferrari Luce
Being Ferrari’s first five-seat model, Luce reaches 0 to 60 mph in approximately 2.5 seconds. The maximum speed of the vehicle was announced as approximately 192 miles per hour.
Deliveries of the car, which is offered for sale with a price tag of approximately 550 thousand euros, are planned to start in the fourth quarter of the year. While Ferrari developed and produced all components of the vehicle at its facilities in Maranello, it entrusted the design process to the LoveFrom agency founded by former Apple design chief Jony Ive.
Ferrari CEO Benedetto Vigna drew attention to the importance of representing the new technology in a form that complies with the brand’s design approach. Vigna stated that the Luce model will give drivers the same feeling as classic Ferrari models.
Market reaction and investor concerns
Analysts attribute the decline in shares to the repercussions created by the design and investors’ concerns about high R&D costs. Many fans share the view that the electric model will undermine the brand’s classic design and internal combustion engine heritage.
Morningstar strategist Michael Field stated that investors are worried that high development costs will negatively affect company profitability. Oddo BHF analyst Anthony Dick emphasized that this reaction was the sharpest market reaction ever seen for a car design.
Ferrari management believes that the Luce model will delight both existing loyal customers and new buyers. The company argues that the unique sound of the electric engine and the driving experience it offers will create a new world of sensations for drivers.
How do you think Ferrari’s entry into the electric car market will affect the brand’s iconic identity?
