Ferrari EV a hit in China, hitting sales target despite harsh criticism

[Financial News]  

The Italian luxury carmaker's first EV is posting unexpectedly strong results despite criticism of its design. It is said to have already met its sales target for the year. Strong demand from Chinese consumers appears to be driving performance beyond expectations.
The Financial Times reported on the 29th local time that Ferrari's first electric vehicle, the Ferrari Luce, has already reached its annual sales target after finding success in China, despite harsh criticism of its design and the resulting backlash from investors and fans.
Citing two sources, the FT said Ferrari had internally set a target of selling fewer than 500 units of the electric Ferrari Luce this year, but had already reached that goal earlier this month.
The Ferrari Luce, priced at 550,000 euros per unit and designed by former Apple designer Jony Ive, has exceeded this year's target as it gains traction in the Chinese market.
Launched in May, the Luce became a punchline on social media. Its unusual design, which seemed far removed from Ferrari's traditional models, drew harsh criticism.
Amid the mockery, former Ferrari chairman Luca Cordero di Montezemolo even argued that the Luce should not carry Ferrari's iconic prancing horse emblem.
In Milan, Ferrari shares plunged more than 8% on the first trading day after the Luce was unveiled in May.
Ferrari, which is set to announce quarterly results on the 30th, has said the Luce embodies its latest technologies and will appeal to a new generation of wealthy buyers. The company has also expressed confidence that it will be especially popular in China and Silicon Valley.
Ferrari also gave dealers a special instruction: do not pressure traditional Ferrari collectors to switch to EVs.
Still, sources said that despite the early backlash, the Luce is gaining momentum in China and is also receiving positive reviews from entrepreneurs at tech companies in Silicon Valley.
Scott Sherwood, an independent analyst covering luxury car brands, noted that Ferrari had targeted a specific customer base from the outset when launching the Luce. He emphasized, "Ferrari's marketing and customer insight are on a completely different level from many competitors."
James Grznik, an analyst at Jefferies, also said in a note to clients that Ferrari has the potential to make the Luce a hit among tech workers who have made a fortune during the Artificial Intelligence (AI) boom.
Meanwhile, Ferrari has not disclosed any short-term targets, but said it aims to sell about 2,500 Luce EVs by 2030, or roughly 600 units a year. That would account for about 5% of Ferrari's total annual sales, a level many analysts consider achievable.

[email protected] Song Kyung-jae Reporter