Ferrari (NYSE:RACE) has spent decades cultivating an image built on scarcity, sound and speed.
The Luce, its first fully electric vehicle, has tested all three pillars at once, and the market's verdict was swift: the shares fell as much as 8% in the days following the Rome unveiling, wiping roughly €4 billion to €5 billion from the company's market capitalisation.
The car was revealed on 25 May at a ceremony featuring Formula 1 drivers Lewis Hamilton and Charles Leclerc, but the headlines were quickly dominated not by the Luce's 1,050-horsepower quad-motor powertrain but by the backlash to its design.
Created by LoveFrom, the agency founded by former Apple design chief Sir Jony Ive, the five-seater electric sedan represents the furthest aesthetic departure from Ferrari's traditional design language in the company's history. Social media comparisons ranged from a Honda Accord to a luxury toaster.
The criticism was not confined to the internet. Former Ferrari president Luca di Montezemolo, widely credited with shaping the marque's modern era, was scathing, saying he hoped they would at least remove the prancing horse logo from the car.
Italian deputy prime minister and transport minister Matteo Salvini called it outrageously expensive and questioned whether it resembled a Ferrari at all.
UBS, which maintains a 'buy' rating and $483 price target, struck a more measured tone, describing the design as a one-off rather than indicative of a broader shift in Ferrari's future design language.
The broker noted that customer sentiment on both design and value for money was mixed and softer than pre-event expectations, meaning Ferrari may need to rely more on collectors than initially anticipated.
However, the Swiss bank said discussions with more than 15 Ferrari clients during the event were more constructive than the public reaction suggested, pointing to stable underlying loyalty despite muted enthusiasm for the specific model.
The pricing debate is central to the investment case. At a base price of €550,000 (roughly $640,000), with personalisation potentially pushing it higher, the Luce sits in ultra-premium territory.
UBS said margins appear in line with other Range models, suggesting the pricing reflects significant development investment rather than an attempt to extract a premium for the electric powertrain alone.
Citi was more cautious, noting that by launching the Luce now, Ferrari has highlighted the inherent difficulty and risk of the battery electric transition, particularly for higher-branded sports car manufacturers.
The broker observed that Ferrari is clearly benchmarking its new electric model as a separate product for a separate audience, targeting new world customers in new segments and regions while attempting to protect existing loyalists.
Whether the Luce will attract enough buyers at €550,000, and what effect it will have on brand perception, remains the open question.
There is a precedent for this kind of backlash. When Ferrari unveiled the Purosangue SUV in 2022, investors voiced similar concerns about brand dilution.
That model went on to become one of the company's bestsellers, with demand exceeding supply. The Mustang Mach-E provoked comparable fury from Ford purists before becoming a commercial success.
With four more model launches planned for the remainder of 2026, including expected additions to its combustion-engine range, the Luce will be assessed alongside a broader portfolio refresh.
UBS forecasts revenue growing to €8.1 billion in 2027, with EBIT margins expanding to 30%, suggesting the underlying business trajectory remains intact regardless of the electric vehicle debate.
The shares closed at $333 on Wednesday, well below UBS's $483 target, implying the market is pricing in considerable risk that the Luce represents a misstep rather than a Purosangue-style slow burn.