Quick overview

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Ferrari officially unveiled its highly anticipated first-ever fully electric vehicle, the Luce. The following morning, Ferrari shares plummeted 6% to 7% overnight, wiping out roughly €3.7 billion in market capitalization.

Developed in collaboration with former Apple design chief Jony Ive, the Luce is a €550,000 ($640,000) four-door, five-seat liftback. Social media and automotive forums immediately erupted with harsh criticism, comparing the ultra-luxury EV’s silhouette to a “Honda Accord,” an “Apple Store minivan,” or a “luxury toaster.” Analysts noted it was one of the sharpest negative market reactions to a car’s physical aesthetics in recent history.

 Investors are deeply worried that a heavy (2,300 kg) five-seater family saloon strays too far from Ferrari’s core DNA—exclusivity, roaring internal combustion engines, and track-focused performance.

At $640,000, the Luce is the most expensive production EV ever built. Wall Street is highly skeptical about whether substantial demand exists for a utility-focused EV priced three to four times higher than a Porsche Taycan Turbo S or a Lucid Air Sapphire.

While the Luce launch triggered a sharp single-day drop, Ferrari has actually been locked in a relentless downward trend for nearly a year. The stock has fallen nearly 40% from its historical highs.

Slowing Growth Targets (The Oct 2025 Drag): At its Capital Markets Day late last year, Ferrari management laid out its 2030 financial roadmap, targeting roughly €9.0 billion in net revenue by the end of the decade. This implies a compound annual growth rate (CAGR) of just 5% over the next five years—a significant deceleration from the double-digit growth investors had priced into the premium valuation.

Bucking the EV Trend: Ferrari is launching an ultra-expensive EV at a time when the broader luxury EV sector is struggling. Competitors like Lamborghini have shelved fully electric plans to pivot back to hybrids, and Porsche has aggressively scaled back its EV delivery targets due to cooling global demand. Investors fear Ferrari is moving aggressively into a segment others are fleeing.

Near-Term Margin Pressure: Analysts (including downgrades from firms like HSBC) have noted that while the new flagship hybrid F80 rollout will support margins, those gains are currently being offset by heavier Formula 1 spending, foreign exchange headwinds, and massive R&D outlays for the new electric platform.