Ferrari unveiled its first fully electric vehicle, a four-door sedan called the Luce, during a launch event in Italy on May 26, 2026 [1].

The debut marks a pivotal transition for the luxury carmaker as it attempts to enter the electric vehicle market. However, the immediate reaction from investors and enthusiasts has created volatility for the company's stock.

The Ferrari Luce carries a price tag of $640,000 [2]. This cost has drawn sharp criticism from both public officials and the market, leading to a decline in Ferrari's share price [3].

Italy Deputy Prime Minister and Transport Minister Matteo Salvini criticized the new model, saying it is "extremely expensive" and "looks nothing like a Ferrari" [4]. The sentiment was echoed by some enthusiasts on social media, with one fan saying that the vehicle is "insulting" [5].

Critics argue that the sedan's design fails to reflect the traditional identity of the brand. This disconnect between the product and the heritage of the company has raised doubts about the market demand for a high-priced electric sedan.

Ferrari CEO Benedetto Vigna defended the pricing and the direction of the new model. Vigna said the cost of the manufacturer's new Luce model was a fair price to pay for innovation [6].

While the company focuses on the technological leap, the market response suggests a tension between innovation and the expectations of luxury collectors. The drop in shares indicates that investors are concerned about whether the Luce can maintain the brand's prestige while pivoting to a new powertrain.

“"extremely expensive" and "looks nothing like a Ferrari"”

The backlash against the Ferrari Luce highlights the risk luxury brands face when transitioning to electric power. For a company whose value is tied to heritage and a specific aesthetic, a departure in design—coupled with a price point that exceeds the perceived value of the innovation—can alienate its core customer base and spook investors.