Ferrari unveils $1m ‘Luce’, its first fully electric car, in a tough market

ROME – Italian luxury carmaker Ferrari has unveiled its first fully electric model, the Luce, belatedly joining rivals such as Porsche and Lamborghini to offer clean-energy driving thrills.

But the Luce – Italian for “light” – has yet to win over investors.

Ferrari shares fell nearly 8 per cent on May 26, as investors and critics reacted coolly to the Luce, questioning whether it remained true to the brand’s identity.

Mr Fabio Caldato, portfolio manager at AcomeA, which owns Ferrari shares, said 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 added.

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

The car looks like a “mix between a Honda Accord EV and Tesla 3”, Mr Pierre-Olivier Essig, head of research at AIR Capital, wrote in a note. “We are lost in translation with Ferrari’s new strategy.”

Renowned for its powerful engines, the prestigious sports car manufacturer already sells nearly half of its cars in hybrid versions. Yet, the brand with the prancing horse logo took several years before deciding to throw its hat into the all-electric ring.

The five-seat Luce, which analysts believe could be priced upwards of €700,000 (S$1 million), boasts a top speed of over 310kmh, accelerating to 100kmh in 2.5 seconds, according to Ferrari.

With a massive 122kWh battery, it offers a range of over 530km and weighs 2.26 tonnes. With fast charging, the vehicle can reach an 80 per cent charge from 10 per cent in 20 to 25 minutes, the company claims.

The car is only the second Ferrari model with four doors in the company’s history, after the Purosangue sport utility vehicle, and the first five-seater for a brand better known for its sleek two-seaters.

“This new model carries into the future the values that make Ferrari instantly recognisable all over the world,” Ferrari chairman John Elkann said after presenting the car to Italian President Sergio Mattarella in Rome.

While the brand developed many of the components in-house, the Luce’s design was entrusted to the LoveFrom collective of Mr Jony Ive, who designed many of Apple’s most iconic products, and industrial designer Marc Newson.

Ferrari describes its new electric vehicle as a “glass house”, with headlights that are invisible when switched off, and a rear end reminiscent of famous models such as the 360 Modena.

Built in a new factory in Maranello, northern Italy, the first cars are scheduled for delivery towards the end of 2026.

Not so fast

Investors are not yet convinced by Ferrari’s shift to electric, which comes as other carmakers have hit the brakes on expanding their electric ranges due to slower take-up than they hoped for.

“We maintain the view that an electric model with a high price tag will not generate significant volumes” capable of bolstering Ferrari’s earnings, Equita analysts wrote in a research note on May 26.

Banca Akros analysts were more positive, noting that even with the risk of margin dilution, “we believe that the extremely high price more than offsets this dilution, with the Luce already expected to be profitable”.

Akros noted that Ferrari’s chief executive Benedetto Vigna has said he expects half of the Luce orders to come from new clients.

Ferrari’s share price already plummeted in October 2025 when the first details of the Luce were unveiled, with analysts disappointed by a long-term profit outlook that fell short of expectations.

Ferrari scaled back its electric ambitions at the end of 2025, projecting that electric models would account for 20 per cent of its line-up in 2030, down from its previous target of 40 per cent. AFP, REUTERS