Critics give Ferrari Luce EV a cool response, shares fall

By Giulio Piovaccari and Philippe LeroyBeaulieu

ROME, ‌May 26 (Reuters) - Ferrari shares ​plunged by ​more than 8% on Tuesday as investors and critics reacted coolly to the Italian luxury sports carmaker's new Luce electric car, questioning whether it remained true to the brand's identity.

The four-door, ‌five-seat family car, costing €550,000 ($640,000), is a radical departure for the prancing horse marque. It was ⁠developed with the help of former Apple design chief Jony Ive and his collective LoveFrom.

Ferrari's Milan-listed shares closed down 8.4%, while its New ‌York-listed shares were down by 5.1% ‌as of 1550 GMT.

Fabio Caldato, portfolio manager at AcomeA SGR, which owns Ferrari shares, told Reuters the share reaction reflected broader market worries. "Ferrari is currently being penalised for an aesthetic disappointment, which follows the significant concerns ​over the expansion of its range to include electric models," he said.

Many of the comments on social media were also downbeat, with the look of the vehicle coming in for criticism.

"It looks nothing like a (Ferrari). ⁠Is this supposed to be 'innovation'? Who knows what (company founder) Enzo Ferrari would say," Italian Deputy Prime Minister and Transport Minister Matteo Salvini wrote on X.

FERRARI'S ​FIRST FULLY ELECTRIC CAR

Unveiled late on Monday, the Luce marks Ferrari's entry into the fully electric segment, a major milestone for a luxury carmaker traditionally associated with high-performance combustion ​engines and their distinctive sound.

Luca Cordero di Montezemolo, who held ‌various leadership positions in Ferrari for more than 20 years before an acrimonious departure in 2014, said the new model was a betrayal of Ferrari's history.

"I hope that they take ⁠off the prancing horse (logo) from that car," he said on the sidelines of a business conference in Rome.

TARGETING CHINA AND TECH-GEN BUYERS

The Luce, named after the Italian word for "light", is expected to begin deliveries in the fourth quarter. It is aimed at ⁠new markets, including China, where electric vehicles account for a growing share of premium car sales.

Ferrari is also targeting a new ​generation of wealthy buyers, including technology-sector entrepreneurs in hubs such as Silicon Valley, as it seeks to broaden its appeal beyond its traditional customer base.

"We remain rational and assume that this new product might appeal to a niche market of customers," AcomeA's Caldato ‌said.

Ferrari buyers typically own more than one vehicle from the brand, reflecting its collector-driven and wealthy customer base.

The frosty market reaction underscores the risks facing Ferrari as it ‌attempts to preserve exclusivity and pricing power while navigating a broader industry shift towards electrification.

Luxury automakers continue to face uncertainty ⁠over demand for high-end EVs. Ferrari last year ‌postponed plans for a second electric ​model until at least 2028, Reuters reported.($1 = 0.8590 euros)

(Reporting by Philippe Leroy Beaulieu in Gdansk, Giulio Piovaccari in Rome and Andrea Mandala' in Milan; Editing by Alvise Armellini, Keith Weir and ‌Emelia Sithole-Matarise)

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