Ferrari Shares Fall After Luxury Carmaker Unveils Its First Fully Electric Vehicle

Ferrari’s shares fell sharply after the luxury automaker unveiled its first fully electric vehicle, marking one of the company’s most significant strategic shifts in decades. The new model, called the Ferrari Luce, was introduced in Rome in May 2026 at the Vela di Calatrava venue, with Ferrari saying the name “Luce,” meaning “light,” was chosen to suggest clarity and direction.

The launch represents Ferrari’s entry into the full-electric market at a time when other high-end carmakers have become more cautious. Rival brands including Porsche and Lamborghini have recently slowed or scaled back EV plans amid softer demand. Ferrari’s decision to move ahead with a fully electric model highlights both the pressure and the opportunity facing luxury carmakers as the auto industry transitions away from combustion engines.

Ferrari CEO Benedetto Vigna called the launch a “very, very important day” and said it signaled the start of “a new chapter” in the company’s history. He emphasized that introducing new technology requires respect for both the engineering and the brand’s identity. According to Vigna, Ferrari wanted the Luce’s design to reflect the fact that it is a different kind of car, while still appealing to both loyal customers and new buyers. He said Ferrari expects existing clientele to be interested in the vehicle and believes the EV will also attract fresh demand.

The Luce is Ferrari’s first five-seater and is designed to deliver performance associated with the brand’s supercars. Ferrari said it can accelerate from 0 to 60 mph in about 2.5 seconds and reach a top speed of roughly 192 mph. The vehicle is priced at about 550,000 euros, or around $640,000, with deliveries set to begin in the fourth quarter of the year.

Ferrari said the car was developed and manufactured in-house in Maranello, Italy, while the design was handled by LoveFrom, the firm founded by former Apple design chief Jony Ive. That detail drew additional attention because Ferrari is known for tightly controlling its design language and brand image.

Investor reaction was negative. Ferrari shares in Milan dropped about 8% on Tuesday, while U.S.-listed shares fell 5.3%. The stock had already risen strongly ahead of the reveal, suggesting expectations were high before the launch. Analysts said the decline reflected concern that Ferrari’s design approach and electric pivot could alienate traditional fans who associate the brand with combustion-engine sound, styling, and exclusivity. Others pointed to the high research and development costs associated with EV development and the risk that Ferrari may struggle to earn a sufficient return.

The car also drew criticism from prominent figures in Italy’s political and automotive circles. Former Ferrari chairman Luca di Montezemolo called the vehicle a disgrace to the company’s history, while Deputy Prime Minister Matteo Salvini mocked its price and design on social media. Ferrari declined to comment on Montezemolo’s remarks.

Despite the backlash, Vigna said the company’s focus is on emotion and driving experience, arguing that electric power can still deliver a distinctive sound and sensation. Ferrari’s challenge now is to prove that it can modernize without losing the identity that made the brand iconic.