Ferrari's Massive Risk Gives Investors Rare Opportunity

Ferrari (NYSE: RACE) is taking on a big risk launching the Luce, the company's first fully electric vehicle (EV). One part of the broader risk is that there might not be a market for ultra-high-end EVs, which was a reason rival Lamborghini canceled its first planned full EV. It was also a sizable risk for the brand to develop an EV when it drifts away from its heritage of racing-inspired designs and powerful, loud combustion engines. If Ferrari's goal was to get everyone talking about the Luce, it was a resounding success. If Ferrari's goal was to convince everyone the Luce was a true Ferrari product design, the initial feedback was overwhelmingly negative. Ferrari's stock initially traded lower after the unveiling, but for savvy investors, Ferrari's risk presents an opportunity.That Ferrari's Luce was unveiled with a shocking design probably shouldn't surprise anyone, considering that the new four-door, five-seat "family car" was designed largely by auto industry outsiders Jony Ive and Marc Newsom. The backlash was intense and wasn't limited to social media, as even the Italian deputy prime minister, Matteo Salvini, weighed in, along with former Ferrari CEO Luca Cordero di Montezemolo.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool