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Ferrari Stock Tumbles 8% Following Luce EV Debut, but Analysts Urge Patience

Ferrari's shares dropped sharply Tuesday following the unveiling of the Luce, the luxury automaker's first fully electric vehicle. The stock fell more than 8% in the trading session after the Monday reveal of the five-seat model, priced at 550,000 euros, or approximately $640,000. The Milan-listed company's shares recovered slightly Wednesday morning before closing marginally lower. CEO Benedetto Vigna called Monday's launch a pivotal moment representing a new chapter for the company. Market participants expressed concerns about the Luce's unconventional design and its potential impact on residual values and investor returns. However, analysts at RBC Capital Markets cautioned against excessive worry. They noted investor skepticism similarly greeted the Purosangue SUV debut in 2022, yet that model subsequently became one of Ferrari's bestselling vehicles with demand outpacing supply.