Italian luxury carmaker Ferrari this week unveiled its first fully electric vehicle to reporters in Rome, Italy, a four-door, five-seater model named “Luce,” developed in collaboration with former Apple design chief Jony Ive and his creative collective LoveFrom.

The first Luce models, whose name means “light” in Italian, are expected to begin deliveries in the fourth quarter of 2026, with prices estimated at around €550,000 (about $640,000).

The launch comes at a challenging period for automakers and their electric vehicle ambitions.

Several manufacturers, including Ferrari, have scaled back electrification targets amid softer demand in the United States and intensifying competition from Chinese domestic carmakers.

At the same time, rising tensions linked to the Iran conflict and the resulting pressure on fuel prices have renewed attention on some of the advantages associated with electric vehicles.

The initial reaction on the markets was one of skepticism. When trading reopened in Italy on Tuesday morning after the Pentecost or Whitsun bank holiday, Ferrari’s share price almost immediately shed around 6% of its value, a loss in the region of €3.7 billion in market capitalization.

The stock largely steadied after the sharp initial decline.

Scuderia Ferrari drivers Lewis Hamilton and Charles Leclerc, fresh from Sunday’s race in Montreal, Canada, unveiled the vehicle during the event in Rome.

However, Ferrari Chief Executive Officer Benedetto Vigna noted that the project reflects years of development, saying the car was “the result of five years of work” due to the industry’s lengthy research and development cycle.

Ferrari said the Luce will have a top speed of 310 kilometres (192.6 miles) per hour. Like many electric vehicles, the car also delivers rapid acceleration, capable of reaching 100 km/h in just 2.5 seconds.