The most awaited launch in Ferrari's recent past was meant to be a party. Investors treated it like a problem.
Ferrari pulled the cover off the Luce on Tuesday. It is the brand's first all-electric car.
The event was in Rome. The name means "light" in Italian.
Ferrari CEO Benedetto Vigna called the day "very, very important." He called it the start of "a new chapter."
Investors did not agree. Milan shares fell about 8%, and U.S. shares dropped roughly 4%.
The Milan stock is now down more than 32% over the past 12 months. The Luce is Ferrari's first five-seat car.
It hits 60 mph in around 2.5 seconds. It tops out near 192 mph.
The price is roughly $640,000. The first cars ship in the fourth quarter.
The look was done by LoveFrom. That is the design firm started by ex-Apple design chief Jony Ive.
The launch was one of the most-watched stock events in Europe this month.
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There are two reasons, per analysts. The first is brand.
Ferrari has built its name on loud, gas-burning cars for years. Adding a quiet, five-seat EV feels off-script for a lot of fans.
Michael Field, chief equity strategist at Morningstar, said many fans think the EV "dilutes the supercar brand." Anthony Dick, an auto analyst at Oddo BHF, said the stock drop is "by far the sharpest reaction we've seen for a car design - the market has spoken."
The second reason is money. Building EVs from scratch is costly.
Investors worry the research and design costs will eat into Ferrari's high margins. That is the kind of brand-based question that does not show up on a balance sheet.
Porsche and Lamborghini have already pulled back on their own EV plans. Demand was just not there.
Vigna says Luce drivers will feel "the same sensation" as in any other Ferrari. He admits the sound is different.
Ferrari said it built all the Luce parts in-house in Maranello. The brand also welcomed new buyers drawn in by the EV.
That mix is the bet. The plan is to sell the Luce to new clients while keeping old ones happy with gas cars.
The market just told Vigna how it feels about that. The drop on Tuesday is one of the worst single-day moves for the stock all year.
The launch is also a test for the wider luxury car space. If the Luce flops, it will give the rest of the field one more reason to sit on EV plans.
If it works, it could set a new bar for what high-end EVs look like.
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