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Ferrari (RACE) got hit in the market on Tuesday after showing its first fully electric car, the Luce, a $640,000 model that has already turned into a fight about what the brand should even be in the EV age.
The launch was held in Rome by the Italian luxury sports car maker based out of Maranello, Italy. “Luce,” meaning “light” in Italian, has been named for the message of clarity and direction.
However, the trading community hasn’t quite approved of the decision as Ferrari stocks listed on the Milan exchange dropped 6.1% in morning trade after narrowing some losses. Within the year, its stocks have lost close to 27%.
Ferrari tests loyal buyers with an electric car that looks nothing like its old supercars
The Luce is not a traditional Ferrari with its sharp corners, rumbling engines, and chaotic beauty associated with the brand. This is an entirely new car, with a novel design – something that made its debut quite challenging for Ferrari.
In the past, the manufacturer had announced that it would never make an all-electric vehicle but instead opt for petrol-powered hybrid vehicles.
Benedetto Vigna, the CEO of Ferrari, revealed in Rome that the Luce required a development period of five years to come to life.
Following its presentation, he referred to it as a serious technology project rather than just another experiment with the company’s first electric car. The car uses its own Ferrari-built electric motors on each wheel, enabling it to accelerate to 60 mph in 2.5 seconds, allegedly.
The company also said it built the car’s parts in-house, wanting to keep control of repairs for years and help protect the car’s resale value. That matters at this price point, because nobody paying $640,000 wants a future museum piece that becomes impossible to service.
At the moment, it is difficult for large automobile companies to operate in the electric car sector. Such prestigious names as Porsche and Lamborghini had to tone down their electric car production due to declining interest. It is becoming even harder for them since Chinese electric brands started creating pressure through more affordable, fast, and aggressive competition.
Ford and Volkswagen are going back to gasoline-powered vehicles. This is due to poor sales of electric vehicles in America during the time of Donald Trump’s presidency.
Ferrari executives answer backlash as social media splits over the Luce design
The internet reacted like the car had personally insulted someone’s grandfather. One X account wrote: “Ferrari just killed their brand just like Jaguar did. This is straight to the junkyard trash.”
Another account posted: “What is going on with European Luxury car manufacturers? First Jaguar and now Ferrari.” (Jaguar had faced backlash after changing its look and brand message.)
A third X post said: “Absolute masterclass in design. Ferrari just unveiled the breathtaking LUCE concept, and it is a total game changer.”
Flavio Manzoni, Ferrari’s chief design officer, spoke about the criticism in an interview with YouTuber Cleo Abram. After that first mention, Flavio said critics are part of building something new. He also admitted that an electric Ferrari with a very different shape is “polarising,” but said he thinks people may warm to it in the coming months.
Benedetto also defended the design when CNBC asked whether Ferrari could satisfy both new buyers and its traditional customers. He said: “Look, when you do a new technology, you need always to keep in mind a word that is called respect.”
He added: “Respect of the technology, because when you have a new technology, you need to make sure that that technology is properly represented in the design, so the design must be different.”
According to Benedetto, the company will not leave behind its petrol and hybrid vehicles.
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