Numbers Don't Lie: Ferrari Is Still a Unicorn and Still a Big Buy Despite Luce Backlash

It was always going to be a groundbreaking moment when Ferrari (NYSE: RACE) unveiled the Luce, its first-ever full electric vehicle. Ferrari pushed the boundaries a bit too far for some people, and the internet was ablaze after the May launch with memes and backlash revolving around the Luce's minimalist and un-Ferrari-like design, designed by industry outsider and ex-Apple designer Jony Ive's firm. The backlash was intense, and then Ferrari's chief marketing and commercial officer, Enrico Galliera, left roughly a month after the Luce unveiling.

The Luce launch is an important one, and it sets the precedent for how Ferrari transitions into a new electrified era, despite its history and heritage of high-end racing and the roar of gasoline-powered engines. There's already evidence that the Luce will be successful, and history reminds us many times over that a dustup-to-success phenomenon isn't unusual.

Luce. Image source: Ferrari.

Numbers don't lie

Let's cover some simple numbers and timelines. The first hint that the Luce would be fine, as would sales and demand, was from Ferrari's CEO himself, Benedetto Vigna, who, per Bloomberg, confirmed that the Luce was receiving orders from existing and new customers and that the order book already extended toward the end of 2027. An order book soaking up production toward the end of 2027, for a new EV that starts deliveries this October, suggests Ferrari customers aren't the ones driving backlash on the internet (who would have guessed?).

The Chinese market perhaps missed the kerfuffle, because, according to CarNewsChina, all of the country's allotment of Luce vehicles starting at roughly $586,000 were sold "immediately." To be fair, there have since been conflicting reports that Ferrari may still be accepting orders in China, though it's unclear if that's due to additional supply or false initial reports. To be fair a second time, Ferrari could slap a logo on a cardboard box with four wheels, maybe only three, and almost certainly sell out of the small allotment of units.

Finally, while Ferrari's stock quickly sold off 6% the day of Luce's unveiling, since the day after, the stock is up over 10% while the S&P 500 has remained slightly lower.

History tells us this

History tells us this has happened plenty of times before. Let's start with Detroit automaker Ford Motor Company (NYSE: F), when it ditched the iconic Mustang design and moved to the electric Mustang Mach-e version. Mustang purists and fans cried foul and similarly set the internet ablaze. It was doomed to be a flop, many said. But by 2024 the Mustang Mach-e had sold 51,745 units for a 27% increase over the prior year, while the traditional Mustang had sold 44,003 units for a 9.5% drop compared to the prior year. In 2025, that growth trend would have been similar if not for the ending of the $7,500 federal EV tax credit, but even so, the electric Mustang still won the head-to-head sales battle by roughly the same number of units.

Another example: Volkswagen-owned Lamborghini launched the Urus in 2018 and faced wild criticism for taking a sharp turn away from its low-slung, aggressive, sleek hypercars to more of a luxury SUV. Then, however, the Urus became an absolute status symbol among the ultra-wealthy and essentially doubled Lamborghini's global sales volume. That example held true for Porsche's Cayenne as well as Ferrari's own Purosangue. Change is rarely fun, but sometimes it's essential.

What it all means

This all goes to say that if you're an investor interested in owning shares of arguably the best automotive stock in the world, don't let the backlash against the Luce dissuade you. Early evidence shows that the Luce will be fine, history tells us that this has happened many times before, and Ferrari still has many high-quality attributes of a strong business that can fight off typical automotive industry narratives such as low margins and cyclicality.

RACE Operating Margin (TTM) data by YCharts

As you can see in the graph above, Ferrari's margins dwarf those of its automotive competitors, and Wall Street gives it valuations closer to those of high-end luxury stocks -- and rightfully so. Ferrari's business is also far less susceptible to economic downturns and industry cyclicality because, simply put, ultra-wealthy Ferrari consumers aren't impacted as much financially. Ferrari is a fine-tuned business machine that races and wins on Sunday and sells on Monday, and the stock is still a smart buy for those willing to dig into the research.

Daniel Miller has positions in Ford Motor Company and General Motors. The Motley Fool has positions in and recommends Apple and Ferrari. The Motley Fool recommends BYD Company and General Motors. The Motley Fool has a disclosure policy.