Ferrari stock falls after unveiling Luce electric vehicle in Rome

Tuesday 26 May 2026 - 08:41

By: Dakir Madiha

Ferrari stock falls after unveiling Luce electric vehicle in Rome

Ferrari shares dropped sharply on European markets following the unveiling of the company’s first fully electric vehicle, the Luce, at an event in Rome. The decline came as investors reassessed demand prospects for ultra luxury electric vehicles and questioned whether Ferrari could maintain its premium positioning in a rapidly evolving market.

The Luce, presented after five years of development, marks a strategic shift for the Italian luxury automaker. Designed in collaboration with LoveFrom, the design firm founded by former Apple design chief Jony Ive, the vehicle introduces a four motor all wheel drive system delivering 1,050 horsepower. It accelerates from 0 to 100 km per hour in 2.5 seconds and reaches a top speed of 310 km per hour, supported by a 122 kWh battery offering an estimated 530 kilometer range under European testing standards.

Ferrari priced the Luce above 500,000 euros, positioning it among the most expensive electric vehicles in the global market. Unlike traditional Ferrari models, the Luce is a five seat liftback, signaling a departure from the brand’s historic focus on two seat sports cars. Early deliveries are scheduled to begin in October, with production set to ramp up at the company’s E Building facility in Maranello later in the year.

Market reaction reflected growing uncertainty in the luxury electric segment. Ferrari shares had already been under pressure before the unveiling, and the stock has declined significantly over the past year amid broader weakness in the luxury sector. Investors expressed concern that demand for high priced electric vehicles may not match expectations, particularly as global consumer confidence softens.

Analysts had warned of execution risks ahead of the launch. Some financial institutions lowered their price targets on Ferrari earlier in May, citing uncertainty over the company’s transition strategy. Retail investors also voiced disappointment on trading platforms, arguing that the Luce failed to meet expectations despite its technical performance.

Ferrari’s shift toward electrification comes as several competitors adjust their own electric vehicle strategies. Porsche and Lamborghini have slowed parts of their electrification plans, while Ferrari has reduced its target for fully electric models to 20 percent of its lineup by 2030, down from a previous goal of 40 percent. The revision, announced in late 2025, triggered a separate drop in the company’s share price.

Company leadership maintains that demand for the Luce is developing ahead of production. Ferrari’s chief executive stated that interest levels are rising as the company prepares to begin manufacturing, positioning the model as a key step in the brand’s long term transformation.