• Ferrari shares fell after criticism of its first EV, the Luce, but Barclays says the sell-off is excessive.
  • The bank notes the model will represent only a small portion of sales and is one of 20 launches planned through 2030.
  • Barclays says the design reflects a strategic innovation bet, not a fundamental risk to Ferrari's outlook, and keeps its Overweight rating and EUR355 target.

Ferrari's Luce Sparks Investor Backlash

Ferrari's shares slid in Milan trading after the reveal of its first fully electric model, the Luce, drew sharp criticism from enthusiasts and analysts over its design. The stock drop, which wiped out billions in market value, reflected concerns that Ferrari may be straying from its iconic brand identity. However, Barclays argues the reaction is overblown, emphasizing that the Luce is just one of 20 new launches planned through 2030 and will account for a limited share of sales.

Barclays reiterated its Overweight rating on Ferrari with a EUR355 price target, stating that the Luce's design is a deliberate strategic bet on innovation rather than a stumble. The bank expects Ferrari's electrification push to unfold gradually, with the Luce contributing only modestly to near-term results. “The sell-off appears excessive given the model's small volume contribution and Ferrari's strong track record of executing on high-margin products,” said a Barclays analyst.

Context: Ferrari's EV Strategy and Market Reaction

Ferrari has positioned the Luce as a premium offering within its limited-volume business model, with deliveries expected to begin later in 2026. The company targets roughly 20% of sales from fully electric vehicles by 2030, alongside hybrids and traditional combustion engines. The negative design reception has sparked debate among investors about whether an electric Ferrari can maintain brand cachet, but Barclays argues that Ferrari's pricing power and loyal customer base will support demand.

Competition in the luxury EV space is intensifying, with peers like Lamborghini and Porsche also rolling out electric models. However, Ferrari's scarcity-driven approach—producing fewer than 14,000 cars annually—may insulate it from volume-driven risks. Barclays notes that early customer feedback on the Luce's performance and range will be critical, but the bank expects Ferrari to navigate the transition without eroding margins.

Analyst Sentiment and Outlook

“We view the current sell-off as a buying opportunity,” added the Barclays analyst. “Ferrari's fundamentals remain rock solid, and the Luce is a long-term bet on electrification, not a near-term earnings driver.” The bank highlighted that Ferrari's resilience under tariff scenarios and its strong cash flow generation support the stock's premium valuation. Meanwhile, other analysts are waiting for more concrete order data before revising their views. Ferrari declined to comment on the stock move, according to people familiar with the matter.

Correction: An earlier version of this article misstated the Luce's delivery timeline. Deliveries are expected in late 2026, not early 2027 as previously indicated.