RACE Stock Slips: Ferrari's New EV Supercar Luce Fails To Impress Retail Traders

• Ferrari’s new EV, designed with Jony Ive, departs from the brand’s traditional sports-car style with a five-seat, four-door design.
• Ferrari said the Luce supports its long-term electrification strategy and complements its gas-powered models. 
• Ferrari’s first-quarter deliveries fell 4.4%, though profit margins stayed strong above 39%. 

Ferrari N.V. (RACE) stock dropped 3% overnight on Monday after the luxury automaker introduced its first fully electric vehicle, the Luce, at an event in Rome. 

Investors reacted cautiously to the company’s aggressive shift toward electrification and the model’s unconventional design direction.

Race’s Luxury DNA Questioned After Luce Reveal 

The new EV, developed with former Apple designer Sir Jony Ive and his LoveFrom collective, marks a major departure from Ferrari’s traditional sports-car identity. 

The unveiling raised fresh concerns about how the Italian automaker will preserve its exclusivity and racing heritage in the electric era. The Luce becomes Ferrari’s first production vehicle with a five-seat layout and four doors. The model features a large glass-heavy body design, oversized wheels and a fully electric powertrain powered by four independent motors.

The Luce is part of Ferrari’s long-term plan to offer different types of vehicles, first outlined in 2022. The company sought to allay performance fears, saying that electrification will complement, rather than replace, Ferrari’s traditional combustion-powered models.

Ferrari said the vehicle can accelerate from zero to 100 km per hour in 2.5 seconds and delivers more than 1,000 horsepower equivalent. The new attempt did not resonate well with investors who viewed the launch as a sharp break from Ferrari’s traditional focus on lightweight, combustion-engine sports cars known for mechanical sound and exclusivity. 

RACE Deliveries Slow 

Ferrari reported lower vehicle shipments during the fiscal first quarter, with deliveries declining 4.4% year-on-year to 3,436 units. 

Even so, the company maintained strong profitability. Ferrari’s EBITDA margin remained above 39%, helped by demand for personalized vehicle features and higher-priced limited-production models.

Investors are also worried that possible new U.S. tariffs on European car imports could raise costs for Ferrari in North America, one of its biggest markets. This could lead Ferrari to either raise car prices or absorb some of the extra costs, which could hurt profit margins. 

RACE Retail Traders View

On Stocktwits, though retail traders cast doubt on the new model's success, sentiment around the stock shifted from ‘bullish’ to ‘neutral’ the previous day, with a 1,500% surge in message volume. 

A user said, “This is a disgrace to the brand. A disgrace to elegant design.  A disgrace to technology,” and criticized the vehicle’s charging capability, driving range and styling. 

Another user said, “total lame ev design. if RACE reflects reality it should flush red 15% tomorrow.” 

RACE stock has declined nearly 6% year-to-date. 

Also See: FUTU, BJ, MLCO Stocks Hit 52-Week Lows Last Week: What's Driving The Selloff?

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