On May 26, the legendary Italian car company Ferrari (BIT: RACE, NYSE: RACE) demonstrated that the electric vehicle (EV) slowdown remains a major concern in 2026 as it opened severely in the red upon unveiling its latest automobile.
Specifically, the firm introduced its very first EV, Luce, designed by LoveForm – a company founded by Apple’s (NASDAQ: AAPL) former Chief Design Officer Jonathan Ive, and former blue-chip tech giant designer Marc Newson – on Monday, and swiftly faced a mixed reaction.
Despite the design efforts and Ferrari’s prestige, the car itself was equally praised as a ‘game-changer’ and compared to Jaguar’s troubled rebranding, ultimately ensuring the announcement led to substantial stock market losses.
Indeed, RACE shares plunged 6.29% from €310 at the start of the day to €290.50 at press time in the Italian stock market on Tuesday, May 26.
Additionally, while the time zones ensured traders in New York are lagging somewhat compared to their Apennine counterparts, Ferrari stock dropped 3.02% in the pre-market from $348.24 at the Monday closing bell to $337.71 at press time.
Why Ferrari stock is crashing after Luce EV announcement
The reaction to the luxury car company’s first EV comes in a climate of increased skepticism toward the health of the overall electric vehicle industry.
Even the largest firm operating in the industry – Elon Musk’s Tesla (NASDAQ: TSLA) – is more than 14% down from its 2025 highs and appears increasingly dependent on artificial intelligence (AI)-adjacent narratives about autonomous driving and humanoid robots.
Furthermore, a different luxury EV company, the Saudi-backed Lucid (NASDAQ: LCID), has continued its long-running stock market plunge and, at $5.84, LCID shares are down 47.62% year-to-date (YTD) and 94.10% in the red in the all-time chart.
The issues plaguing the industry can be attributed to rising competition from Chinese firms, a broad cost-of-living crisis affecting the appetite for new automobile purchases, and the removal of incentives for buying EVs, which is especially relevant in the U.S.
Indeed, one of the starkest warnings about the state of the sector came in April in the form of a California registrations report that showed a drastic, 40% drop in sales across the board between early 2025 and early 2026.
For Ferrari more specifically, Luce critics also voiced skepticism that much of the company’s popularity is based on scarcity, prestige, and a powerful combustion engine, with many of these traditional boons being absent from a silent EV.
Featured image via Shutterstock
