Ferrari (Ferrari (RACE)) shares took a 5.3% hit on Tuesday, and the culprit isn't a recall or a missed earnings number. It's the company's first-ever electric vehicle — a $640,000, 1,000-horsepower four-door called the Luce, developed with none other than Jony Ive, the former design chief at Apple (Apple (AAPL)).

You'd think a Ferrari EV with Ive's fingerprints on it would be cause for celebration. But investors are looking at the broader luxury EV market and seeing clouds. The Luce is gorgeous, fast, and dripping with Italian craftsmanship — but will enough people with $640,000 to spare buy one?

The Luce: Ferrari's Electric Statement

The Luce isn't just Ferrari's first EV; it's a deliberate departure from the screen-on-wheels approach taken by many competitors. Ferrari says it preserved physical controls and used premium materials to keep the driving experience tactile and emotional. The car delivers more than 1,000 horsepower and over 500 kilometers of range, putting it in the same league as the fastest EVs on the market.

But the price tag — about $640,000 — puts it in a category of its own. That's more than double the price of a Tesla Model S Plaid and well above most luxury EVs. Ferrari is betting that its brand cachet and Ive's design pedigree will justify the premium.

Strong Q1, But the Market Isn't Listening

Earlier this month, Ferrari reported first-quarter 2026 net profit of €413 million, with diluted earnings per share rising to €2.33 from €2.30 a year earlier. The company reaffirmed its full-year guidance, citing strong demand across its automotive, racing, and lifestyle businesses. It also continued its €3.5 billion share buyback program, repurchasing 20,321 shares for about €5.66 million between May 18 and May 20.

None of that was enough to offset the EV jitters. The stock decline came during a mixed trading session — the Russell 2000 rose 1.71%, while the Dow fell 0.15% — suggesting the sell-off was company-specific.

Technical Picture: Bearish Signals Everywhere

Ferrari's stock closed at $329.41 on Tuesday, down 5.3% on the day. That puts it 1.8% below its 20-day simple moving average of $335.75 and 3% below its 50-day SMA of $339.72. The 20-day SMA is below the 50-day SMA, a classic bearish signal. And the death cross that occurred in October 2025 — when the 50-day crossed below the 200-day — continues to weigh on sentiment.

Over the past 12 months, Ferrari shares have fallen 31.83%, reflecting both broader market challenges and company-specific headwinds.

What's Next: Earnings and Analyst Views

Ferrari's next financial update is expected on July 30, 2026. Analysts are looking for earnings per share of $2.84 (up from $2.70 a year ago) on revenue of $2.15 billion (up from $2.03 billion). The stock trades at a price-to-earnings ratio of 33.3x, a premium that reflects Ferrari's brand strength but also leaves little room for error.

Wall Street remains broadly bullish. The consensus rating is Buy, with an average price target of $465.00. Recent analyst moves include:

• UBS: Buy, but lowered its price target to $483.00 from a prior level (April 1)
• JP Morgan: Overweight, raised target to $447.00 (March 3)
• UBS: Buy, lowered target to $555.00 (Jan. 9)

The pattern is clear: analysts like the stock, but they're trimming their price targets as the luxury EV market gets more uncertain.

At the time of publication, Ferrari shares were trading at $329.79, down 5.30% on the day.