Italian luxury automaker Ferrari saw its stock price tumble on Tuesday after unveiling the Luce, the company’s first fully electric vehicle, marking a significant shift in the brand’s traditional approach. Former Ferrari Chairman Luca Cordero di Montezemolo slammed the EV, telling reporters, “I hope they at least remove the Prancing Horse from that car.”
CNBC reports that Ferrari revealed its new electric model at a venue in Rome, with the name Luce translating to “light” in English. According to the company, the name was chosen to evoke “clarity and direction” as Ferrari embarks on this new chapter in its storied history.
Shares of Ferrari have fallen five percent in morning trading, with Ferrari fans rejecting the car for its looks and EV powertrain. One critic is Ferrari’s legendary former Chairman, Luca Cordero di Montezemolo. When reporters asked Montezemolo what he thought about the Luce EV, he said in Italian, “If I said what I really think, I’d harm Ferrari.” Monezemolo added that Ferrari is “risking the destruction of a myth,” before adding, “I hope they at least remove the Prancing Horse from that car.”
The launch of the Luce represents a notable departure from Ferrari’s traditional design language and comes at a time when other luxury car manufacturers, including Porsche and Lamborghini, have pulled back on their electric vehicle plans due to weak consumer demand in the EV market. Social media users began comparing the Ferrari’s pedestrian looks to basic EVs already on the market.
Ferrari CEO Benedetto Vigna characterized the launch as a “very, very important day” for the company, describing it as the opening of “a new chapter” in Ferrari’s history. Addressing concerns about whether the new model could appeal to both existing Ferrari customers and new buyers, Vigna emphasized the importance of respecting both the technology and customer preferences.
“Look, when you do a new technology, you need always to keep in mind a word that is called respect,” Vigna told CNBC’s Charlotte Reed. “Respect of the technology, because when you have a new technology, you need to make sure that that technology is properly represented in the design, so the design must be different.”
The CEO expressed confidence that existing clients would show interest in the Luce while the fully electric model would also attract new customers to the brand.
The Luce breaks new ground for Ferrari as the company’s first-ever five-seater vehicle. Performance specifications include acceleration from zero to 60 miles per hour in approximately 2.5 seconds and a top speed of roughly 192 miles per hour. The vehicle carries a price tag of around 550,000 euros, equivalent to approximately $640,000, with deliveries scheduled to begin in the fourth quarter of this year.
Market analysts attributed the negative stock price reaction to several factors. Michael Field, chief equity strategist at Morningstar, pointed to a combination of design criticism and the market phenomenon of “travel and arrive,” noting that Ferrari’s stock had already risen substantially in anticipation of the launch.
“Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power,” Field explained. He added that from an investment standpoint, many investors had concerns about the development of an EV model due to materially high research and development costs, which could pressure the brand to recoup expenses and potentially dilute investment returns.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.