Ferrari shares slide after internet trashes Jony Ive-designed electric car

Is it a Ferrari or is it a Nissan Leaf? The Italian luxury sports car maker is facing criticism over the design of its first ever electric vehicle.

Called Luce, Italian for “light,” the new model was unveiled in Rome on May 25th and comes with a price tag of €550,000 ($640,000). It was designed in collaboration with art collective LoveForm, which was founded by Apple’s former lead designer Jony Ive.

While Ferrari said the car opens “a new chapter in the history of the Prancing Horse” and called the design “refined,” the critics were dismayed by what some said was an overly simplistic look for such an iconic marque.

Ferrari shares fell 6% the next morning the Luce was unveiled and faced backlash online.

One user on X shared a picture comparing the new electric Ferrari to the similarly looking third-generation Nissan Leaf, a far more affordable option from the Japanese carmaker priced at around $35,000.

Another user prompted ChatGPT to generate the images of an electric Ferrari, saying, “it’s pretty good at this” and arguing that the chatbot’s version would be “more popular” than Ive’s.

Italian Senator Carlo Calenda, who worked for Ferrari in the past, chipped in saying that the new model was “an aesthetic and technological insult to anyone who loves Ferrari.”

First Jaguar, and now Ferrari?

Some commentators also drew comparisons to Jaguar, a British luxury car marque that announced it was going full-electric in 2024 and faced similar backlash.

“What is going on with European luxury car manufacturers? First Jaguar and now Ferrari,” noted one observer.

Jaguar was criticised for abandoning its classic designs and choosing a “woke” marketing strategy – even though the public opinion appears to have softened since.

However, unlike Jaguar, Ferrari isn’t starting over. It’s adding an electric model to motor and hybrid options for buyers in what appears to be an attempt to broaden the marques’s appeal rather than rebrand.

The company defended the new design, with a representative telling the Financial Times that the design was intentionally “polarising” and is not aimed at traditional “petrolheads,” but rather at people who already own an electric car.

The new design also had some positive reactions online, with some praising its “masterclass” design.

Will Ferrari succeed where others failed?

Ferrari is Europe’s most valuable carmaker, but saw its shares drop by more than 25% over the past year due to inflation affecting the broader market of luxury goods.

This may be one of the reasons why the company is taking a risk by launching an electric car just as other Western automakers are scaling back or dropping plans for EVs.

Companies like Ford and Volkswagen have increased their production of petrol cars due to low demand of EVs and competition from China, which is increasingly dominant in the market.

Electric cars are no longer as lucrative in places like the US, where President Donald Trump cut incentives to buyers.

German luxury carmaker Porsche has cut back the production of electric cars, while Lamborghini, another Italian super-car brand, has dropped them altogether.

The Luce marks a change of heart at Ferrari as well. The company said in 2011 that it was unlikely to ever make an electric car, but now it says that it spent the past decade developing its new model.

Ferrari is betting on its exclusive status for its gamble on an EV to pay off. All the components are made in-house and the repairs will also be handled by Ferrari, according to the firm, which should hold its resale value.

The car runs on an electric motor of each wheel, has a range of 530 km (329 miles), and is a five-seater, another first for Ferrari.

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