Ferrari stock fell after EV launch. Don’t be ‘overly concerned’: Citi
Ferrari’s first fully electric car, Luce, appears in a statement image obtained by Reuters on May 25, 2026, after the luxury sports car manufacturer introduced the model.
His Ferrari | via Reuters
FerrariShares fell after the luxury carmaker launched its first all-electric vehicle, which was criticized by its former boss and even Italy’s transport minister.
The company’s shares fell more than 8% on Tuesday after Ferrari’s first five-seater, the Luce, went on sale for 550,000 euros, or about $640,000. Milan-listed shares, which briefly rose over 2% on Wednesday morning, closed the session marginally lower.
But auto analysts downplayed the market’s negative reaction, saying it was “too early to be overly concerned.”
The company unveiled the Luce on Monday, when Ferrari CEO Benedetto Vigna told CNBC that the launch was a “very, very important day” symbolizing a “new page” in the company’s history.
But many criticized Luce’s unconventional design, and some questioned whether an EV could reduce the return on investment for the business.
Analysts at RBC Capital Markets noted investors’ concerns that “Luce’s design, which prioritizes aerodynamics over downforce, could weigh on residual values.”
“However, recall that investors expressed similar concerns when the Purosangue was introduced in 2022. The model has since become one of Ferrari’s best-selling models, with demand exceeding supply,” he said in a research note on Tuesday.
The Purosangue appeared to be a break from the company’s long-standing vow to never produce SUVs. The company called it FUV: “Ferrari Commercial Vehicle.”
“While Luce’s design departs from Ferrari tradition, the company said the driving experience remains true to the brand,” RBC Capital Markets said in a note.
Analysts added that while initial demand for the vehicle is an important indicator for investors to watch, the company may limit Luce’s sales volume “to maintain exclusivity.” We reiterate that it is too early to be overly concerned, especially if the design may appeal to new customers (potentially in China).
How did critics attack Luce?
Customer deliveries are planned to begin in the 4th quarter. Ferrari said it chose to develop and manufacture all components in-house at its factory in Maranello, Italy. The design is by LoveFrom, an agency founded by former Apple design chief Jony Ive.
Former Ferrari chairman Luca di Montezemolo, who held various leadership positions at the automaker for decades until 2014 and now sits on the board of rival McLaren Group Holdings, said Luce was an embarrassment to the company’s history.
“I hope they bring out the rearing horse [logo] from that car,” he said on the sidelines of a business conference in Rome, according to Reuters.
Ferrari’s shares listed in Milan in the last three months.
Ferrari declined to comment. McLaren produces rival supercars, invests heavily in hybrid technology and also competes with Ferrari in Formula 1.
Italian Deputy Prime Minister and Minister of Transport Matteo Salvini also criticized Luce, calling it “extremely expensive”.
“From an aesthetic standpoint, it speaks for itself… It looks like anything but a Prancing Horse carriage. And is that supposed to be ‘innovation’? Who knows what [Ferrari founder] Enzo Ferrari used to say:” wrote to X on Tuesday.
EV demand for luxury cars
Auto analysts at Citi said Ferrari’s Luce launch highlighted the risks of BEV switching among super-rich customers at a time when luxury rivals such as Bentley, Lamborghini and Aston Martin are delaying battery electric vehicle models.
“This has already had some impact on the valuation bracket, with low 5-year EPS growth expectations also weighing on it. However, even outside EU CO2 emissions legislation, as Ferrari highlights, global demand for cars is split between internal combustion engine and BEV technology,” they said in a research note on Wednesday.
“Not even Ferrari can buck this trend forever. Whether the LUCE timing and appeal will solve the BEV transition problem for Ferrari remains to be seen. Ferrari’s earnings will continue to be driven by ICE products for the foreseeable future.”
— CNBC’s Michael Wayland And Robert Frank contributed to this report.
Disclosure: CNBC is a sponsor of McLaren Racing.
