Ferrari's stock experienced a significant decline after the launch of the Luce, its first fully electric vehicle priced at approximately $640,000. The drop was fueled by criticism from former chairman Luca di Montezemolo and Italy's transport minister, who questioned the vehicle's design and its alignment with Ferrari's luxury brand image.
Analysts from RBC Capital Markets noted that while there are concerns regarding the Luce's aerodynamics potentially affecting its residual value, they recalled similar worries when the Purosangue was introduced, which later became a bestseller. The company plans to maintain exclusivity by possibly limiting sales volume, and initial demand will be crucial for investor confidence.
Additionally, analysts from Citi highlighted that the Luce's launch underscores the challenges of transitioning to battery electric vehicles (BEVs) in the luxury market, especially as competitors delay their own electric models.
They emphasized that Ferrari's earnings will continue to rely on internal combustion engine (ICE) products for the foreseeable future, suggesting that the success of the Luce in addressing the BEV transition remains uncertain