Ferrari shares slump after it unveils first fully electric car

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MILAN: Ferrari's stock experienced a sharp decline on Tuesday following the highly anticipated unveiling of its first-ever fully electric vehicle, the Luce.

The luxury carmaker's share price dropped by as much as 8% during morning trading in Milan before recovering slightly to close with a 6% decline. This market volatility suggests that investors remain highly uncertain about whether the new electric model will prove to be a commercial hit for the brand. Prior to the launch event, the historic automotive manufacturer was valued at €56bn (£48bn).

The company, which continues to manufacture all of its vehicles at its iconic headquarters in Maranello, northern Italy, faces an uphill battle to convince its traditional customer base.

The market reception highlights widespread anxieties regarding how a shift toward electrification might impact the company's financial growth and luxury brand identity.