Ferrari Stock: Is It Down?

The future of Ferrari is here, and the five-passenger Luce EV appears quite controversial. Shares for the automaker fell Tuesday, the day after the Italian carmaker unveiled its first electric car.  

The Luce is a massive departure from Ferrari’s current lineup, which farmed out the interior and exterior design to LoveFrom, the firm headed by former Apple Design Chief Sir Jony Ive. The new car’s radical design is not sitting well with shareholders, CNBC reports.  

Ferrari shares were down 4.6 percent on Tuesday following the start of early-morning trading in the United States, and down 30.2 percent for the year. In Milan, Italy, shares were down about 8.1 percent as of late Tuesday morning. It’s down 5.3 percent as of Wednesday morning.

Michael Field, chief equity strategist at Morningstar, told CNBC that “fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand…” while investors have been worried about the high R&D costs associated with an EV model.  

Anthony Dick, an auto analyst at Oddo BHF, told the publication that the Luce is “the furthest deviation from the brand’s ethos we’ve ever seen,” and investors are reacting.  

Ferrari CEO Benedetto Vigna said the Luce’s launch is the start of “a new chapter” in the automaker’s history. He also added that Ferrari expects the Luce to attract both existing and new buyers.  

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Source: Ferrari

Motor1’s Take: The Luce is a radical departure from what we have seen from Ferrari over its history. It looks unlike any Ferrari before it, and that might attract a few buyers, but it is not what hardcore Ferrari fans wanted. Maybe this isn’t a car for them as the automaker focuses on being ready for whatever future happens, electric, combustion, or somewhere in between.