Ferrari released their first EV. Wall St hates it

Ferrari released the "Luce" - their first EV car.

This was designed alongside Johnny Ives from Apple... but people are hating on the design, comparing it to the Nissan Leaf

And yeah, that price point is right. The Luce retails for $545k

The car

From the Car and Driver link shared above:

Aerodynamics were paramount, and the Luce is claimed to have a drag coefficient lower than any prior roadgoing Ferrari. Key elements include tunnel-like front and rear spoilers and active grille shutters for the three heat exchangers.

The interior, we predict, will be far less divisive, and we love the merging of the physical and the digital. Overall volume is similar to that of the Purosangue, but without a central tunnel and rear transaxles, the Luce seats five—a Ferrari first. Under the rear liftgate is the largest trunk ever in a Ferrari.

Inserting the Ferrari logo key fob into its dock in the center console powers up the Luce. The four synchronous, permanent-magnet electric motors are heavily rear-biased, with the front pair making 282 horsepower, while the rear two pump out 831 horsepower. Total output is not a direct sum at 1035 horsepower, but it still exceeds that of any other roadgoing Ferrari.

Despite a curb weight of nearly 5000 pounds, Ferrari says the Luce will reach 62 mph in 2.5 seconds and 124 mph in 6.8 seconds. Top speed is a claimed 193 mph. There is a launch mode that's activated via a pull handle located in the overhead console. In addition to optimizing the traction-control system, it provides extra torque boost and unlocks an additional 54 horsepower.

So, the Luce will be Ferrari quick, but what about the sound? Gianmaria Fulgenzi, chief product development officer, said, "The sound has been one of the biggest challenges with this car." Ferrari could have programmed the Luce to play a soundtrack from one of its screaming V-12s, but the company took a different approach. It wanted the sound the driver hears to be an outgrowth of the mechanical noise the car is actually making, so it developed (and patented) a system that captures sound from inside the rear axle and processes it. The amplification is based on the mode selected via the e-manettino, with "Perfo" having the maximum aural feedback, "Tour" having a midlevel soundscape, and "Range" being the quietest mode. No matter the setting, the car also projects the sound externally.

The Stock

Shares of Ferrari in Milan fell about 8%, while U.S.-listed shares fell roughly 4%. The Milan-listed stock is down more than 32% over the last 12 months.

Here's a great review from Auto Focus for all my fellow gearheads:

Why are shares falling?

Analysts attributed the share price reaction to a mix of “design hate” and the classic market adage of “travel and arrive,” noting that Ferrari’s stock price had risen significantly ahead of Monday’s launch.

“Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power,” Michael Field, chief equity strategist at Morningstar, told CNBC by email.

“From an investment perspective, many investors had feared the development of an EV model, on the basis that the research and development costs are materially high, putting a lot of pressure on the brand to recoup these, and potentially diluting investment returns for the business,” Field said.

Anthony Dick, an auto analyst at Oddo BHF, said the stock price response is “by far the sharpest reaction we’ve seen for a car design... the market has spoken.”

Reflecting on market concerns and risks to the business if Ferrari’s launch of the new model was to fail, Dick cited the impact on brand equity, noting Luce marks “the furthest deviation from the brand’s ethos we’ve ever seen,” and the potential hit on profitability if the model really does not sell.

Ferrari’s Vigna said the Luce model would provide Ferrari drivers with “the same sensation” as a typical model but the all-important sound of the car was one associated with an electric engine and “each engine has its own sound.”

“What is important is the emotion that is [being given] to the driver,” he added.

My thoughts

I'd never buy a car this expensive in the first place. If there was a gun to my head and I had to buy a Ferrari, it certainly wouldn't be this one.

I agree with the market here. This design is lame + not in the spirit of Ferrari.

Sentiment: bearish