Ferrari shares fall 7% after luxury carmaker launches first fully electric vehicle

Ferrari shares fell sharply on Tuesday morning after the luxury automaker unveiled its first fully electric vehicle, the Luce, at a venue in Rome. The name Luce, which translates to light, was described as evoking clarity and direction. The model signals a shift away from Ferrari’s traditional design language as rivals such as Porsche and Lamborghini have scaled back on their own EV launches amid weak demand. Investors reacted quickly, with Ferrari’s Milan-listed shares dropping more than 7% in early trading. The stock has fallen roughly 27% over the last 12 months.

This debut comes as Ferrari must balance its combustion heritage with an increasingly electric lineup. The Luce represents a milestone in the company’s broader electrification strategy, even as other luxury brands reassess demand for EVs. The immediate market response—shares down more than 7% in early trading and a 12-month decline near 27%—highlights the sensitivity of luxury automakers to EV adoption timelines. Market participants will watch how Ferrari expands its EV offerings while maintaining performance branding.