Ferrari CEO Benedetto Vigna has publicly defended the €550,000 (approximately $640,000) price tag for the company's first fully electric vehicle, the Luce, following its unveiling on Monday. The announcement triggered a negative market reaction, with Ferrari's Milan-listed shares dropping 8% on Tuesday, reflecting investor concerns about the high price and the company's strategic direction in the electric vehicle market [1].
Vigna emphasized that the Luce's cost reflects Ferrari's commitment to innovation, stating, 'You have to see Luce to understand that it has nothing to do with Chinese EVs or those by other brands,' and clarified that Ferrari is not replacing traditional engines with all-electric versions [1]. The launch also sparked criticism on social media, with the car's unconventional design being questioned by Ferrari's former boss and Italy's transport minister [1].
Despite the initial backlash, auto analysts have urged caution, suggesting it is 'too early to be overly concerned.' After the 8% drop, Ferrari's stock closed down a further 0.1% on Wednesday but rebounded, trading up 1.7% on Thursday [1]. Vigna described the Luce launch as a 'very, very important day' for Ferrari, marking the beginning of 'a new chapter' in the company's history [1].
Addressing concerns about customer acceptance, Vigna told CNBC that respect for new technology and its proper representation in design are crucial, indicating that the Luce's distinct design is intentional to showcase its technological advancements [1].
CONCLUSION
Ferrari's unveiling of the Luce, its first all-electric vehicle, has generated significant market and public reaction, with an initial stock decline and ongoing debate over its high price and design. While the CEO and analysts urge patience, the event marks a pivotal shift for Ferrari as it enters the electric vehicle market.