Ferrari unveiled the Luce, its first fully electric model, on May 25. Designed by Jony Ive and Marc Newson’s LoveFrom studio, the car delivers over 1,000 horsepower and launches from 0‑60 mph in 2.5 seconds, priced at $640,000. Within hours the stock fell nearly 8 percent in Milan and over 5 percent in New York, wiping out roughly $4 billion in market value.

Critics focused less on the powertrain and more on the visual departure. Former chairman Luca di Montezemolo suggested dropping the prancing‑horse emblem, while Italy’s deputy prime minister called the design “anything but a car from the Prancing Horse.” Analysts at Oddo BHF called it the furthest deviation from Ferrari’s ethos, even likening it to a Hyundai.

Ferrari has historically guarded its aesthetic, issuing cease‑and‑desist letters to owners who altered paint or accessories. The Luce backlash reveals a deeper lesson: brand‑driven emotional appeal outweighs raw performance for luxury buyers. As the market punishes misaligned design, the company must reconcile electric ambition with the sensory experience that defines a Ferrari.

The episode serves as a cautionary note for any leader launching a disruptive product under a heritage brand. Aligning technical innovation with core identity protects shareholder confidence and avoids costly market corrections. Ferrari’s share plunge demonstrates that even a $640,000 price tag cannot compensate for perceived betrayal of brand DNA.