U.S. car manufacturers have learned a valuable lesson about electric vehicles over the past couple of years: American consumers don’t like expensive EVs.
That’s why Ford is still pushing hard for EVs despite the $19.5 billion in losses it was recently forced to write down in its electric vehicle division. The company says its entire strategy is out of whack and that EVs under $30,000, like those built by Chinese automakers, such as NIO, are the future.
Luxury Italian automaker Ferrari (RACE) didn’t get that memo. The company’s stock tanked 4.3% shortly after the opening on Tuesday morning as investors digested Luce, its upcoming EV offering.
Ferrari unveiled the four-door, five-seater on Monday. The EV was developed with the help of former Apple design chief Jony Ive, who is credited with designing Apple’s first iPhone.
The car is a sharp contrast to Ferrari’s history. When most people think of Ferrari, they think of two-seater sports cars like the 360, 250 GTO, and the Testarossa, not family vehicles with enough space for 2.5 children.
However, the Maranello Marque is going in a different direction with its next-gen vehicle, but the timing and pricing are leaving investors scratching their heads about who exactly this prohibitively expensive vehicle is for.
Ferrari stock takes a tumble after revealing Lucero EV
As one might expect, 87-year-old Ferrari introduced the next generation of its iconic luxury vehicles at the iconic Vela di Calatrava – Citta dello Sport arena in Rome.
Despite the extra doors and seats, Ferrari says the Luce, which translates to “light” in Italian, is still a sports car with four electric traction motors and the kind of performance you would expect from a Ferrari. The electric engines feature electrically controlled active suspension and four-wheel steering to ensure the vehicle still feels like a Ferrari.
“The Ferrari Luce name evokes clarity and direction. It lights the way towards the future and defines the intent to create a Ferrari 360°, not merely the “electric Ferrari” but an entirely new Ferrari, designed for deeper engagement and performance, with a unique and recognizable character,” the company said Monday.
The company says it engineered, developed, and manufactured the vehicle’s main components, including the electric engines and battery pack, in-house to ensure quality.
And all of that care and precision is going to cost you. The Ferrari Luce will retail for an eye-watering 550,000 euros ($640,000) once deliveries begin in the fourth quarter this year.
That price point may be what’s causing the stock to tumble, as Ferrari could soon find out what non-luxury automakers have learned in recent years. For them, cheaper is better.
