Ferrari shares fall after luxury carmaker launches first full EV

Shares of luxury car manufacturer Ferrari It fell sharply on Tuesday morning, shortly after the company launched its first all-electric vehicle.

Maranello, Italy-based sports car manufacturer introduced Luce, meaning “light”, at a venue in Rome, describing the name choice as one that “evokes clarity and direction”.

The highly anticipated model marks a departure from the aesthetics of typical Ferraris and comes despite other luxury carmakers, notably Porsche and Lamborghini, abandoning plans to launch their own electric vehicles due to weak demand.

Ferrari’s shares were last seen on Tuesday morning, down 6.1 percent, paring previous losses. Milan-listed shares are down nearly 27% in the last 12 months.

Ferrari CEO Benedetto Vigna described the launch of the Luce model as a “very, very important day” for the company, symbolizing the opening of a “new page” in its history.

Asked if the company could satisfy both new customers and its typical customers, Vigna told CNBC’s Charlotte Reed: “Look, when you make a new technology, you always have to keep in mind that word respect.”

“Respect the technology, because when you have a new technology you need to make sure that that technology is represented correctly in the design, so the design needs to be different,” he added.

Vigna stated that the automobile manufacturer respects the different needs and wishes of its customers, adding that existing customers will be interested in Luce and that the company will open the door to new customers thanks to the fully electric model.

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