Ferrari's unveiling of its first all-electric vehicle, the Luce, has triggered significant investor backlash and criticism from both industry insiders and government officials. Following the Luce's reveal on Monday in Italy, Ferrari shares fell about 8% in Milan and dropped 5.3% in New York on Tuesday, reflecting negative market sentiment toward the new model and the company's shift toward electric vehicles [1]. Analysts attributed the stock's decline in part to 'design hate,' with Michael Field, chief equity strategist at Morningstar, noting that many fans believe Ferrari's embrace of the EV concept dilutes the supercar brand, which is traditionally associated with classic design and combustion-engine power [1].
The Luce, designed by former Apple design chief Jony Ive, represents a notable departure from typical Ferrari aesthetics, featuring a minimalistic interior with screens and a bubbly exterior [1]. The vehicle has also faced criticism from former Ferrari executive Luca di Montezemolo, who stated, 'I hope that they take off the prancing horse [logo] from that car,' and from Italian Deputy Prime Minister and Transport Minister Matteo Salvini [1]. Ferrari declined to comment on di Montezemolo's remarks [1].
In the wake of Ferrari's challenges, Lamborghini CEO Stephan Winkelmann defended his company's decision to cancel its own all-electric vehicle plans, including the Lanzador and an electric version of the Urus SUV, in favor of focusing on plug-in hybrid electric vehicles. Winkelmann described this move as 'the right way to go' for Lamborghini, citing market observations that the acceptance curve for EVs among Lamborghini's customer base is not increasing [1]. He emphasized that innovation should not be forced upon customers and that each brand must determine its own strategy [1]. Lamborghini, owned by Volkswagen, is among several global automakers that have scaled back EV investments due to weak demand [1].
Winkelmann declined to comment directly on the Ferrari Luce or the responses it has received but reiterated that Lamborghini's transition from traditional internal combustion engines to plug-in hybrids was a crucial and successful decision for the company [1].
CONCLUSION
Ferrari's introduction of the Luce EV has led to a sharp decline in its share price and widespread criticism, highlighting market resistance to electric supercars. Lamborghini's CEO has publicly defended his company's pivot to plug-in hybrids, suggesting that customer acceptance of EVs in the luxury segment remains limited. The event underscores the challenges traditional luxury automakers face as they navigate the transition to electrification.