NextFin News - Ferrari CEO Benedetto Vigna on Thursday mounted a firm defense of the company's first fully electric vehicle, the Luce, and its eye-watering 550,000-euro (approximately $640,000) price tag, following a sharp market sell-off and a wave of public criticism. The Maranello-based luxury carmaker saw its Milan-listed shares plunge 8% on Tuesday, the day after the vehicle's Rome debut, reflecting deep investor skepticism over whether the ultra-wealthy will embrace a battery-powered Ferrari.
Speaking at a roundtable in Modena, Italy, Vigna dismissed comparisons to mass-market electric vehicles, asserting that the Luce represents a fair price for technological innovation. According to Reuters, Vigna emphasized that the Luce has "nothing to do with Chinese EVs or those by other brands," seeking to position the vehicle in an elite tier of its own rather than a competitor in the crowded global EV market. He also clarified that Ferrari does not intend to replace its legendary internal combustion engines entirely with electric powertrains, a misconception he blamed on media coverage.
The market's cold shoulder was accompanied by a vocal backlash on social media and from prominent Italian figures. The Luce's unconventional design drew criticism from Ferrari's former boss as well as Italy's transport minister, highlighting the cultural and aesthetic hurdles the brand faces as it transitions away from the roaring V-12 engines that defined its legacy.
Vigna, however, argued that a radical departure in design was necessary to respect the new technology. In an interview with CNBC, Vigna explained that introducing new technology requires a design that is visibly different to properly represent the engineering shift. He noted that when adopting a new technology, a company must ensure that the technology is properly represented in the design, meaning the design must be different.
While the initial stock drop signaled panic, some market observers urge caution before writing off Ferrari's electric ambitions. Auto analysts have downplayed the immediate stock slide, suggesting that it is too early to draw definitive conclusions about the Luce's long-term commercial viability. Ferrari's stock showed signs of stabilization on Thursday, trading up 1.7% in Milan after closing down a marginal 0.1% on Wednesday.
Nonetheless, the steep price tag—nearly double the entry price of many traditional Ferrari models—presents a significant gamble. Critics point out that the luxury EV market remains largely untested at this price point, and early adopters of electric supercars from other boutique brands have shown mixed enthusiasm. Ferrari's challenge will be convincing its traditional, engine-sound-obsessed clientele that a silent, battery-powered vehicle can deliver the same emotional thrill, while simultaneously attracting a new generation of tech-focused, ultra-high-net-worth individuals.
The company's financial performance has long relied on scarcity and high margins rather than volume. By pricing the Luce at $640,000, Ferrari is signaling that it will not compromise its luxury status for the sake of electrification. Whether the brand's loyal collectors agree that a silent Ferrari is worth more than a roaring V-12 remains the ultimate question for Maranello.
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