Ferrari’s first EV sparks investor and social media backlash

{"text":[[{"start":7.95,"text":"Ferrari’s “polarising” bid to lead the electric transition in the luxury car market has sparked a social media and investor backlash, deepening division within the industry about whether the super-wealthy are prepared to move away from the combustion engine."}],[{"start":22.3,"text":"Online commentators have called the Luce “an insult to the marque” and “hideously underwhelming”. But prior to the launch, Ferrari chief executive Benedetto Vigna told the FT he was “not scared” of how people would react to the unconventional model. "}],[{"start":37.65,"text":"The Italian group’s gamble on what it accepts is a “polarising” strategy comes as industry executives have been split over whether there is any natural demand for battery-powered luxury cars. "}],[{"start":48.45,"text":"Developing an electric sports car presents a unique challenge for manufacturers to recreate the emotional thrill of petrol vehicles due to the lack of engine noise as well as the batteries weighing down the car."}],[{"start":61.2,"text":"A handful of luxury groups have pushed into EVs and are standing by the strategy, even in the face of driver indifference or opposition. "}],[{"start":69.7,"text":"Jaguar Land Rover caused an uproar with its rebranding of Jaguar as a premium all-electric marque in 2024. But Jaguar is continuing its pursuit of younger and wealthy customers and is aiming to launch a new EV model that will be priced at more than £100,000 later this year or early 2027. "}],[{"start":null,"text":"

"}],[{"start":91.6,"text":"BMW-owned Rolls-Royce is creating a custom-built, two-seater electric vehicle exclusively for its 100 ultra-wealthy collectors. "}],[{"start":100.75,"text":"But others have significantly watered down their EV ambitions. Porsche’s radical EV shift backfired with a significant writedown as it reallocated investments to petrol and hybrid models. "}],[{"start":111.7,"text":"Italian rival Lamborghini recently cancelled plans to launch its first fully electric car, the Lanzador, by 2030 and will instead roll out a plug-in hybrid model. "}],[{"start":122.25,"text":"“We always have to keep in mind that when they buy our car . . . they’re buying into a dream and not mobility,” Lamborghini chief executive Stephan Winkelmann recently told the FT’s Future of the Car summit. "}],[{"start":135.5,"text":"British luxury-car maker Lotus, owned by China’s Geely, has also made a sharp pivot to focus on plug-in hybrid models, while Aston Martin pushed back the launch of its first EV until the early 2030s. "}],[{"start":148.7,"text":"Despite a merger with an EV start-up, McLaren is also developing a hybrid version of its first sport utility vehicle to be launched in the next few years. Bentley is on track to release its first electric model next year but plans to continue to sell plug-in hybrids beyond 2035. "}],[{"start":165.95,"text":"“The EV penetration in the market, especially for the high premium segment, is not as high as expected,” particularly in China, Feng Qingfeng, chief executive of Lotus Group, recently told the FT’s Future of the Car summit. "}],[{"start":180,"text":"Ferrari has built its first five-seater sports car designed by former top Apple designer Sir Jony Ive in a way that minimises the battery weight. Its electric motors and components produce a noise inspired by an electric guitar."}],[{"start":193.35,"text":"Vigna justified Ferrari’s gamble as “moving forward the flag of innovation” although the group’s shares closed down 8.5 per cent in Milan on Tuesday."}],[{"start":202.9,"text":"Even some of its former executives were blunt in their criticism."}],[{"start":206.45000000000002,"text":"“We risk destroying a legend, and I’m truly sorry about that,” former Ferrari chair Luca di Montezemolo said on the sidelines of an event held by Italian business association Confidustria. "}],[{"start":219.65,"text":"He said the Luce was “certainly a car that at least the Chinese won’t copy”, adding: “I hope they at least remove the prancing horse from that car.”"}],[{"start":227.9,"text":"Analysts said the initial negative reaction to Ferrari’s new model was not surprising and the key challenge for the company was to fill the order book with the highly specific clients it had targeted for the Luce. "}],[{"start":239.4,"text":"“We believe there are sufficient collectors and completists, customers aspiring for collector status as well as new to Ferrari customers to ensure that Luce firmly establishes its position within Ferrari’s range,” Bernstein analyst Stephen Reitman said in a note on Tuesday."}],[{"start":null,"text":""}],[{"start":null,"text":""}],[{"start":255.55,"text":"Ferrari executives have said they would not target the company’s core fan base to buy the Luce. In a first for the company, Ferrari will give equal priority to orders from new and traditional customers."}],[{"start":266.8,"text":"The model has a starting price of €550,000 in Italy, making it the most expensive of its non-supercar models. "}],[{"start":275.90000000000003,"text":"While Ferrari does not disclose its sales targets, Scott Sherwood, an independent analyst of luxury car brands, said the company’s main focus was probably tech entrepreneurs in Silicon Valley and the pricing reflected the “scope of its ambition”. "}],[{"start":290.45000000000005,"text":"“In Ferrari’s calculation, whether most current Ferrari customers think the Luce is cool is irrelevant,” Sherwood said. “If it tested well enough with the tech crowd to fill the order book, that’s all they are concerned with.” "}],[{"start":303.70000000000005,"text":"Ferrari executives and many analysts are not largely concerned about the impact of the Luce on its margins."}],[{"start":309.85,"text":"Vigna has said Ferrari’s foray into EVs would not hurt its industry-beating operating margin of 30 per cent since the company is only aiming to sell limited volumes. The carmaker now aims to make 20 per cent of its models fully electric by 2030, half of its original target."}],[{"start":325.8,"text":"In an interview on Monday, Vigna said: “We put a lot of money into it but we also worked to make this car profitable.” "}],[{"start":332.55,"text":"Additional reporting by Giuliana Ricozzi in Rome"}],[{"start":343,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779864363_9061.mp3"}