Ferrari's first EV sells out this year's target — with China leading the charge

Ferrari's first electric vehicle, the Luce, has hit its annual sales target ahead of schedule — a dramatic turnaround for a model that was widely mocked at its May launch over its design and sent the company's share price tumbling.

The Financial Times reported Wednesday, citing two people familiar with the matter, that Ferrari had aimed to sell close to 500 Luce units this year and reached that goal earlier this month.

The target was met in just two months after the car's May unveiling, with demand particularly strong in China.</span>

The Luce — Ferrari's first four-door, five-seat model — was designed by Jony Ive, the former chief design officer at Apple, and starts at 550,000 euros ($631,000).

When it was unveiled, social media users ridiculed the car's rounded, boxy silhouette — a far cry from Ferrari's signature sleek lines — comparing it to mass-market budget vehicles.

Former Ferrari chairman Luca di Montezemolo was among the harshest critics at the launch, saying "not even Chinese automakers would copy it." He also warned that "our legend is at risk of being destroyed" and called for the Cavallino Rampante — the prancing horse emblem — to be removed from the car.

Ferrari's Milan-listed shares fell more than 8 percent on the first trading day after the unveiling. In the fallout, chief marketing officer Enrico Galliera abruptly stepped down this month and was replaced by a BMW executive, though Ferrari drew a line, saying the leadership change had been planned before the Luce's launch.

Ferrari has positioned the Luce as a model aimed at newly wealthy customers in China and Silicon Valley who are already comfortable with electric vehicles, and has reportedly instructed dealers not to pressure existing combustion-engine enthusiasts to switch.

Ferrari has set a target of selling a cumulative 2,500 Luce units by 2030, or about 600 per year — roughly 5 percent of its total annual sales — a level analysts consider achievable.

CEO Benedetto Vigna has said the limited production volume means the electric vehicle business will not erode the company's operating profit margin, which stands at around 30 percent.

Industry observers have taken note of Ferrari's decision to pursue a bold design that breaks from the sensibilities of its traditional combustion-engine customer base. Some analysts suggest the company deliberately chose a restrained aesthetic — one where the Ferrari identity is only apparent on close inspection — to appeal to Chinese consumers wary of conspicuous displays of wealth, even as combustion-engine regulations tighten in that market.</b></span>

Luxury car analyst Scott Sherwood said Ferrari's marketing and customer insight are "a cut above" those of its rivals.

The day after the Luce's unveiling, a delegation led by Ferrari chairman John Elkann visited the residence of Pope Leo XIV, presenting the pontiff with the car's steering wheel and offering him a test ride.

Ferrari plans to put the first production Luce up for charity auction at Monterey Car Week in California in August, with auction house Sotheby's expecting the winning bid to exceed $1.1 million.

Ferrari is set to report its second-quarter earnings Thursday, and attention is turning to whether the Luce's turnaround will show up in the results.