Ferrari Shares Plunge After Electric Vehicle Launch

Jakarta, CNBC Indonesia - Ferrari’s luxury car shares plunged sharply on Tuesday (26 May 2026) following the launch of its first electric vehicle. The Italian sports car manufacturer based in Maranello unveiled the Luce, meaning ‘light’ or ‘radiance’ in Latin. The launch marks Ferrari’s significant step into electrification amid increasingly aggressive global auto industry efforts to develop eco-friendly vehicles. The highly anticipated model also signifies a departure from Ferrari’s usual aesthetics, arriving as other luxury carmakers like Porsche and Lamborghini have scaled back their own electric vehicle plans due to weak demand. Unfortunately, on the Milan Stock Exchange, Ferrari’s shares fell around 8% on Tuesday, while its US-listed shares dropped 5.3%. Shares listed in Milan have declined over 32% in the past 12 months. Ferrari CEO Benedetto Vigna described the Luce launch as a pivotal moment for the company, symbolising a new chapter in its history. ‘When using new technology, you must always remember the word “respect”,’’ Vigna told Charlotte Reed, citing CNBC International on Wednesday (27 May 2026). ‘Respect for the technology, because when you have new technology, you need to ensure it is well represented in the design, so the design must be different,’ he added. Vigna also stated that the manufacturer respects customer needs and desires, noting that existing customers would be attracted to the Luce and the company would welcome new buyers through this fully electric model. Ferrari’s first EV features a five-seat, four-door configuration. The Luce accelerates from 0-60 mph in approximately 2.5 seconds and has a top speed of around 192 mph. Priced at approximately €550,000 (£470,000; Rp 11.4 billion), deliveries to customers are scheduled to begin in the fourth quarter of this year. Ferrari said it has chosen to develop and manufacture all components in-house at Maranello, while the design was entrusted to LoveFrom, an agency founded by former Apple design chief Jony Ive. Analysts suggest the share decline reflects investor concerns over the company’s electrification strategy. Many question whether Ferrari can maintain its exclusive identity amid global electric vehicle trends. Additionally, some critics argue the design resembles mass-market EVs too closely and lacks Ferrari’s signature aggressive character. Negative social media reactions have further worsened market sentiment. ‘Ultimately, many fans are disappointed that Ferrari has embraced the EV concept, believing it will diminish the brand’s supercar image, which has been built around classic design and pure internal combustion engine power,’ Michael Field, chief equity strategist at Morningstar, told CNBC via email. ‘From an investment perspective, many investors are worried about EV development costs, which are extremely high, putting significant pressure on the brand to recoup expenses and potentially reducing returns for the business,’ Field added. Italy’s Deputy Prime Minister and Transport Minister Matteo Salvini also criticised the Luce. ‘Electric cars are very expensive (€550,000!) and, aesthetically, this car speaks for itself. It doesn’t look like a car from the Prancing Horse [Ferrari] at all. And this is called “innovation”? Who knows what [Ferrari founder] Enzo Ferrari would have said…’ he wrote on X. On the other hand, Ferrari remains optimistic that the Luce will open new markets, particularly among wealthy young consumers and tech enthusiasts in regions like the United States and China. ‘The key is the emotion delivered to the driver,’ Vigna said.