‘Prancing’ Horsefeathers: Ferrari Investors, Fans Diss $640K EV

In Italian, the informal salutation ciao functions as both hello and goodbye. And if you want to say hello to Ferrari’s first fully electric vehicle, you’ll have to say goodbye to a minimum of €550,000 ($640,000).

The Maranello, Italy-based luxury automaker introduced the high-priced Luce, Italian for “light,” on Monday, forging ahead in an EV market where rivals have gotten cold feet. Unfortunately, the vehicle’s ambitious new design went over as well as Domino’s pizza in Napoli: Ferrari shares fell 8.4% in Milan and 4.8% in New York on Tuesday.

Looks that Kill (Your Stock Price)

Under the hood, the Luce has all the makings of a high-performance Ferrari supercar: four electric motors totaling 1,050 horsepower, maximum power of 772 kW, a top speed of 192 mph and acceleration from 0 to 62 mph in 2.5 seconds. But it’s the exterior where critics say the four-door, five-seat family car strayed too far from Ferrari’s brand.

The automaker outsourced Luce’s design to LoveFrom, the San Francisco-based agency led by former Apple chief design officer Jony Ive, who helped develop the iPhone and Apple Watch. Unsurprisingly, the car bears many hallmarks of Apple minimalism, especially in its smooth, rounded corners.

The new look provoked outrage among car fanatics, company alums and even politicians. On the sidelines of Monday’s launch event, former Ferrari chairman Luca Cordero di Montezemolo told reporters, “If I said what I think, I’d be hurting Ferrari,” adding, “at least remove the Cavallino Rampante [the company’s iconic Prancing Horse logo].” Despite the backlash, analysts still see a bright side:

• Last year, Porsche scaled back its EV plans and, earlier this year, Lamborghini abandoned its plans for a luxury EV. Ferrari now has an opening to test the luxury EV space with less competition.
• Analysts at investment bank Intermonte have set a €417 price target, implying a 46% upside for Ferrari shares.

Priced In: Despite the company remaining highly profitable, Ferrari’s Milan-listed shares have tumbled 33% in the past 12 months, partly the product of the company’s own tradition of offering modest, conservative guidance. Tuesday’s tumble may also be attributable to the fact that Ferrari shares had already climbed last week in anticipation of the Luce announcement.