Italy's supercar brand Ferrari has faced a flood of scathing reviews over its first pure electric vehicle (EV), the Luce, unveiled with great ambition. With a former Ferrari chairman joining the public criticism, investors also turned their backs, and the share price plunged more than 8% in a single day. In the luxury automaker industry, skepticism over ultra-high-priced EVs is resurfacing.
According to the Financial Times (FT), on the 26th (local time) in Milan, Italy, Ferrari shares closed down 8.5%. Markets see negative reactions following the Luce unveiling as dampening investor sentiment. Some foreign media analyzed that "the market's anxiety over Ferrari's EV strategy has been reflected." Buoyed by expectations for the Luce, the first pure EV since the company was founded in 1939, Ferrari shares had been on a rise, but they gave back most gains as harsh reviews poured in right after the reveal.
Online, criticism mounted that it was "an insult to the brand," "shockingly bland," and that "Ferrari's signature engine sound is gone." In particular, many noted that the driving feel unique to EVs without engine noise does not match the supercar clientele that values emotion.
Even former executives went public with criticism. Former Ferrari Chairman Luca di Montezemolo said, "We are at risk of destroying a legend," adding, "I would rather they just take the Ferrari logo off that car." He is credited with reviving the company, having led Ferrari from 1991 to 2014.
Electric sports cars are considered a far more difficult field than ordinary EVs. That is because battery weight makes vehicles heavier, and it is hard to replicate the explosive engine sound and vibrations unique to internal combustion engines. As a result, some analysts say EVs inevitably face fundamental limits in the supercar market, which prioritizes emotion.
Major supercar brands are also moving to slow down. Lamborghini scrapped plans to launch its first pure EV by 2030 and pivoted to plug-in hybrids (PHEVs). Lamborghini CEO Stephan Winkelmann recently said, "Customers buy a dream, not a means of transportation." Porsche, too, has increased investment again in internal combustion and hybrids after its aggressive EV transition strategy delivered below-expectation results. Britain's Lotus and Aston Martin have also delayed or revised their EV plans, and McLaren is developing a hybrid model alongside its first SUV.
By contrast, Jaguar and Rolls-Royce are still sticking to EV strategies. According to the FT, Rolls-Royce is developing a bespoke EV for only 100 ultra-high-net-worth individuals, and Jaguar is pushing ahead with a plan to convert the entire brand into a premium EV brand.
With the Luce, Ferrari aims to actively target a new wealthy class rather than existing customers. The price is 550,000 euros in Italy (about 960 million won), the most expensive among its regular lineup. The industry believes Ferrari sees Silicon Valley tech entrepreneurs and younger wealthy individuals as the core customer base.
Ferrari CEO Benedetto Vigna said, "I am not afraid of people's reactions," adding, "This project is about pushing the flag of innovation forward." He emphasized that moving into EVs would not damage Ferrari's high operating margins. Ferrari currently aims to make pure EVs account for 20% of its total vehicles by 2030.