Ferrari launches the Luce, its first electric vehicle

On Monday, Ferrari revealed its first electric vehicle, the Luce. The design of the vehicle was led by Jony Ive and his design firm, LoveFrom. The Luce boasts 1,000 horsepower and the ability to hit 60 miles per hour in just over two seconds. The vehicle is expected to cost around $650,000.

Ferrari is positioning the Luce to attract a new demographic. Ferrari’s chief marketing and commercial officer told the Financial Times that the company’s main target for the Luce is someone who already owns an electric vehicle. This marks a shift from Ferrari’s traditional customer base; more than 80% of the 14,000 people who bought a Ferrari last year are repeat customers. The automaker is also focusing on China, where sales have declined in recent years. While Chinese buyers typically make up around 10% of Ferrari’s overall sales, the company hopes its first electric vehicle will appeal to buyers in the world’s largest market for battery-powered vehicles. The strategic question is whether these buyers will pay for the prestige of the prancing horse—the Ferrari brand logo—on the hood.

The launch comes as the European Union prepares to enforce limits on the sale of new cars with internal combustion engines in 2035. Jony Ive, who created one of four “secret” books containing design notes and text for the project, defended the transition by comparing it to how luxury watchmaker Patek Philippe adapted to the quartz era. Ive noted that the watchmaker survived mainly because it grew during that transition. “If it had been legislated that Patek Philippe had to transition its entire product line to quartz, the resulting challenge would appear similar to the transition Ferrari is facing,” said Ive, the designer who led the design of the Luce.

Despite its performance, public reception has been intense. The Luce is tracking to be the most mocked new vehicle since the Cybertruck. Reactions to the Luce have ranged from flimsy knee-jerk reactions to positively vitriolic, with Bloomberg commenting that the vehicle is a significant stretch for the brand. However, Ferrari’s chief marketing and commercial officer stated that the company wanted the Luce to be polarizing.

Why it matters

Ferrari is attempting to navigate the transition to electric power by targeting a new demographic and the Chinese market, while balancing its luxury heritage against strict European Union emissions regulations.