Key Points

Ferrari's debut electric vehicle, the Luce, drew online criticism for its unusual design.
The firm's core strategies, built on limited production and premium pricing, stay solid and bolster the brand.
With a price-to-earnings ratio of 33.1 near a five-year low, investors may question why they have not added this auto stock to their holdings.

Last October, Ferrari (NYSE: RACE) shared its financial projections through the end of the decade. The outlook pointed to 5% yearly revenue growth from 2025 to 2030. Investors reacted poorly, pushing the stock down 21% within days.

Such sharp moves seem odd for a thriving company. The shares experienced uneven trading in the following months.

The market reacted again when Ferrari unveiled the Luce, its first all-electric model, on May 25. Online critics focused heavily on the distinctive look.

Ferrari shares have traded under $400 since November. Long-term investors may consider whether this presents a chance to acquire the Italian luxury marque.

Image source: The Motley Fool.

Thoughts on the Luce

The Luce came from the design firm LoveFrom, started by former Apple design leader Jony Ive, which explains its fresh appearance to Ferrari enthusiasts. Its specs include 1,035 horsepower and a 0-to-62 mph sprint in 2.5 seconds, which could address some concerns. Priced from roughly $640,000, it aligns with the low-volume, high-value approach.

This marks new ground for Ferrari in the EV space. The Luce features four doors, five seats, and ample cargo space, potentially appealing to a wider audience beyond typical performance fans. Even in a worst-case scenario, any shortfall would likely have limited impact on overall results.

The Ferrari name continues to represent exclusivity, luxury, and top performance. These principles have driven strong pricing ability in the past and should continue to do so.

Valuation Looks Appealing

The stock, still up 691% over the past decade as of early June, sits 33% below its peak from last July. Sentiment has turned, sending shares lower.

The pullback overlooks strong profits. Ferrari posted a 29.7% operating margin in the first quarter of 2026, an elite level for the sector.

The company manages output to keep demand high, which stabilizes results. It also serves affluent buyers, aiding resilience in downturns.

At a price-to-earnings ratio of 33.1 near a five-year low, long-term investors should consider purchasing Ferrari shares.