Ferrari stock tanks 6% as analysts split on $640K electric gamble

Ferrari stock fell sharply on Tuesday after the company unveiled the Luce, its first fully electric car, turning a milestone product launch into a test of investor confidence.

The Milan-listed stock lost about 7%, putting it on course for its biggest daily drop since October, as markets questioned whether even Ferrari can make the jump from roaring engines to battery-powered luxury.

The reaction was not about a weak product, as the Luce is ambitious, expensive and technically striking.

The problem is that Ferrari is asking investors to believe in an electric future just as several rivals are stepping back from it.

Ferrari stock: A $640,000 bet on the future

Ferrari presented the Luce in Rome as a four-door, five-seat electric grand tourer priced at €550,000, or about $640,000.

Developed with help from former Apple design chief Jony Ive and his LoveFrom collective, the car is meant to stretch the Ferrari brand beyond the familiar two-seat supercar formula.

It has four electric motors, more than 1,000 horsepower, a top speed above 310 kilometres per hour and a driving range of more than 500 kilometres.

Deliveries are scheduled to begin in the fourth quarter of 2026.

The spectacle was deliberate as Ferrari staged the launch with a light show and several Luce models in colours ranging from red to white and light blue.

The design is larger, cleaner and more glass-led than Ferrari traditionalists may expect.

That is part of the point.

Enrico Galliera, Ferrari’s chief marketing and commercial officer, said some clients are looking for “something completely different” for different moments in life.

Ferrari is pushing ahead even as Porsche and Lamborghini scale back EV ambitions, citing weaker demand.

Investors were not impressed

The stock’s drop came after a difficult few weeks for Ferrari’s market narrative.

Earlier this month, shares also fell after the company reaffirmed its 2026 guidance, even though first-quarter earnings were resilient.

Deliveries declined by 157 units to 3,436 in the quarter, a drop linked to planned model changeovers.

EBITDA still rose 4% to €722 million, while the EBITDA margin stood at 39.1%, showing that Ferrari’s pricing power remains intact.

That is why the analyst picture looks more complicated than the one-day selloff suggests.

MarketBeat data show Ferrari carries a “Moderate Buy” consensus rating, with an average 12-month price target of $469.06.

Based on a recent price of $348.09, that implies about 35% upside on paper.

The market’s reaction shows how fragile confidence has become when a high-growth luxury stock trades at a rich valuation.

GuruFocus puts Ferrari’s forward price-to-earnings ratio at about 31 times, well above the broader vehicles and parts industry median.

RBC Capital’s Tom Narayan has framed Ferrari’s EV move as a form of hedging: trying to reach a customer group that wants electric luxury while still serving its core petrol-era buyers.

That is the narrow path Ferrari must walk.

Push too slowly, and it risks looking outdated. Push too fast, and it risks diluting the sound, feel and scarcity that make the brand worth so much.