In a surprising twist, Ferrari has entered the electric vehicle (EV) market with the launch of its first electric model, the Ferrari Luce. This move has sparked considerable debate among enthusiasts and investors alike. On May 25, the unveiling of the Luce led to a sharp 8% drop in Ferrari’s stock, wiping out over $4 billion from its market value in mere hours.
While investors expressed their discontent, Ferrari owners felt the impact more acutely. Descriptions like “gut punch” and “betrayal” were used to convey their disappointment, particularly in the design of the Luce, which deviates from the iconic curves and roaring engines that have defined Ferrari for nearly 80 years. A Ferrari representative declined to comment on the matter.
Comparisons have been made to Coca-Cola’s infamous recipe change, with some fans experiencing a profound sense of disillusionment. “Everybody’s speechless,” remarked Michelle Ringwald, a Beverly Hills dentist and Ferrari 812 Superfast owner. “Everybody thinks that it’s comical. It just lacks soul. It doesn’t look like a Ferrari. It looks like a [Nissan] Leaf.”
The Luce, priced at $640,000, is notably the first Ferrari designed in collaboration with an external firm, Jony Ive’s LoveFrom. The influence of the former Apple designer is evident, as the Luce features sleek, minimalist lines reminiscent of a computer mouse, contrasting sharply with the bold, brassy designs of previous models like the 12Cilindri.
“It is not just to the right or to the left, it’s totally in another lane,” said David Lee, a well-known Los Angeles collector, who recently acquired a 1962 Ferrari 250 GTO for over $38 million.
The introduction of the Luce presents a challenging balance for Ferrari. It allows the company to meet stringent emissions regulations, particularly in Europe, and potentially draws in a new customer base, potentially pleasing shareholders eager for growth in new markets. Despite initial skepticism, Ferrari CEO Benedetto Vigna revealed to Bloomberg on May 28 that orders for the Luce have been placed by both existing and new clients.
However, there is concern that this venture into EVs could alienate Ferrari’s traditional customer base, which cherishes the brand’s heritage of glamorous designs and powerful combustion engines. Joe Richardson, a brand communication consultant with a history at Ferrari, commented, “Ferraris are supposed to be sexy and beautiful, and also kind of impractical. When you’re shaken by something that makes you question whether or not the dream is real, it gets a visceral reaction.”
The question remains: Can Ferrari’s foray into electric vehicles coexist with its storied legacy, or does it mark a departure from the brand’s core identity?
A history of victory
Ferrari’s devoted following is a testament to its storied history, even though not all fans own one. Last year, the company delivered fewer than 14,000 vehicles globally, yet it boasts millions of followers across its main and Formula One Instagram accounts. “Just go to any F1 race and watch the Ferrari fans,” advised Vince Finaldi, an owner and collector from Monterey. “It’s like Manchester United fans — they’re rabid.”
Founded by Enzo Ferrari as a racing team in 1929, and established as an automotive company in 1947, Ferrari quickly became synonymous with success. The cars blended cutting-edge engineering with Old World craftsmanship, creating a unique blend of sophistication and style. Enzo Ferrari’s knack for self-promotion helped build the brand’s image from the outset.
The company faced financial challenges and takeover attempts before its IPO in 2015. However, iconic models like the 250 GT Berlinetta and 365 California kept enthusiasts captivated, particularly with the distinctive engine sound that remains the brand’s hallmark. In Italy, Ferrari’s significance is such that new models, including the Luce, receive a blessing from the pope.
For today’s Tifosi, Ferrari represents more than just a car. It embodies a pursuit of excellence, Italian elegance, and power, often associated with luxury and prestige. Ferrari F50s and 308 GTSs have become cultural icons, driven by film heroes and sports stars alike. As classic Ferraris continue to command high prices, they are considered blue-chip collectibles.
“Ferrari is not a private object, it’s a public one,” explained Mamatha Chamarthi, a former technology officer and analyst. “It’s ‘I want to take the Ferrari out and be photographed at the hotel valet getting out of the Ferrari in my Gucci clothes.’”
The loyalty test
Ferrari’s allure translates to remarkable financial success, with per-vehicle revenue significantly surpassing that of luxury competitors like Lamborghini and Porsche. The brand maintains an impressive repeat buyer rate, with over 81% of new Ferraris sold to returning customers who appreciate the heritage, sound, and community of Ferrari ownership.
Kenric Garcia, a collector from Albuquerque, recalls his excitement upon acquiring his first Ferrari, an F430 F1, and the sense of connection to the brand’s racing legacy. “Ferrari makes you feel very special, like you’re part of the team,” he said.
Despite the introduction of the Luce, Ferrari’s commitment to its loyal base remains evident. The company has produced plug-in hybrids since 2019, with plans for 20% of its vehicles to be fully electric by 2030. Bloomberg analysts predict limited sales for the Luce, with deliveries reaching 700 units by 2029. Some existing owners are open to trying the new model, like David Lee, who noted, “If I buy it and don’t like it, I can always sell it.”
Yet, Jony Ive’s minimalist design philosophy challenges Ferrari’s dramatic essence, which many believe is integral to the brand’s identity. Even tech-savvy potential customers in China, accustomed to EVs, have specific expectations for a Ferrari. “People cannot connect Luce to Ferrari. They are connecting it to the Honda Accord,” Chamarthi remarked. “When we look at the DNA of a Ferrari customer, they’re not buyers of transportation. They are buying the Ferrari as a collectible.”
Ferrari continues its strategy, with the first press drives of the Luce expected by year-end. While some dealers have remained silent, others have redirected inquiries to Ferrari’s corporate PR.
Among more pragmatic enthusiasts, there is an understanding that embracing EVs may be necessary to ensure the continued production of internal-combustion supercars. “I don’t wanna hear any more negative takes about the Luce — they’re missing the point,” said Charlie Gray, a collector from Los Angeles. “It’s very easy to hate. But it’s more meaningful to find the one compelling or interesting reason to like something.”
In the end, the launch of an electric Ferrari is not a catastrophe, even if it feels that way to some. As Kenric Garcia concluded, “If Ferrari didn’t do this, maybe we wouldn’t have the screaming V-12s that we have right now in production. Maybe traditional Ferrari buyers don’t love it, but you have to innovate. You’re not always gonna impress everyone.”
Elliott writes for Bloomberg.
Original Story at www.latimes.com