Ferrari Confronts Market Shock After Controversial Electric Car Debut
Ferrari's Electric Car Launch and Market Reaction
By Alvise Armellini and Giulio Piovaccari
ROME, May 27 (Reuters) - If Ferrari wanted to grab the world's attention with the Luce, its first all-electric car, mission accomplished - even if much of the reaction has been shock and outrage.
The Unveiling of the Ferrari Luce
The new model is a four-door, five-seat family car that looks nothing like the Italian marque's usual fare of low-slung, petrol-powered sports cars.
It was unveiled at a gala event in Rome late on Monday, then shown the next day to Italian President Sergio Mattarella and Pope Leo, a well-known car enthusiast who appeared happy to take the driver's seat.
Design Controversy and Public Reaction
But the styling, largely the work of auto industry outsiders Jony Ive and Marc Newson and their collective LoveFrom, has left many fans and commentators baffled. Ive is best known as the designer of Apple's iPhones and MacBooks.
Social media is awash with unflattering memes, comparing the Luce variously to a vacuum cleaner, a rubber clog or the much-maligned Fiat Multipla, a 1990s people carrier often cited among the world's ugliest cars.
Industry and Investor Response
Italian Deputy Prime Minister Matteo Salvini publicly wondered what founder Enzo Ferrari, who died in 1988, would make of it. Former Ferrari CEO Luca Cordero di Montezemolo said the car should be stripped of the prancing horse logo.
Investors flinched, too. Milan-listed Ferrari shares fell 8.4% on Tuesday, with one investor telling Reuters the stock was "being penalised for an aesthetic disappointment."
The shares slipped another 0.1% on Wednesday.
Ferrari declined to comment on the backlash.
Publicity and Strategic Implications
Media Coverage and Brand Awareness
ALL PUBLICITY IS GOOD PUBLICITY?
Felipe Munoz of Car Industry Analysis said Ferrari likely anticipated the uproar, given the deliberate break with tradition, and noted negative publicity is still publicity.
"From a communication standpoint, they have managed to get the world talking about the electric Ferrari," he said. "As far as awareness goes, they have made it, because there is no other topic at the moment."
Long-Term Impact on Ferrari's Brand and Sales
Munoz described the Luce as a "statement product" - unlikely to be a big seller but key to showcasing technology and repositioning Ferrari in the electric age.
A company source noted earlier Ferrari curveballs - the all-wheel-drive FF in 2011 and the Purosangue SUV in 2022 - also drew scepticism before going on to sell well.
HSBC global autos analyst Michael Tyndall said Ferrari may have expected to raise eyebrows, but not trigger such a sharp market reaction.
"There is a sense listening to management, that it felt compelled to take a risk given it is such a departure from their core DNA (4-door, 5-seats, electric)," he wrote. "Orders will be the key determinant of whether the risk pays off."
(Reporting by Alvise Armellini and Giulio Piovaccari. Editing by Mark Potter)
