The world may not be ready for a $640,000 electric vehicle, even if it is a Ferrari

Plus, green financing bucks this spring's weakness in bond markets

In today’s edition:

— Ferrari’s new EV model fell flat with reviewers, but rich car buffs may yet bite

— Green stocks aren’t the only thing rallying this year. Green bonds are on the rise, too.

— Latest from the unfolding catastrophe in Garden Grove, Calif.

— Hurricane season is around the corner, with number of storms seen lower this year

— Arthur leads the list of hurricane names this season. See full list below.

Ferrari’s first EV, the Luce. Photo: Ferrari.

At a time when most car companies are slashing the prices of their electric vehicles to stimulate demand, the idea of a $640,000 EV might on the face of it seem like a bad idea; even if it is a Ferrari and it’s designed by legendary Apple designer Jony Ive.

That might explain why the new Ferrari Luce fell flat this week with European auto reviewers, sending the company’s shares down as much as 8% in Milan. Reviewers crushed Ive’s design, which favors the smooth Apple iPhone look over the historic muscle-car appearance of the high-priced Ferraris.

Ferrari enthusiasts who don’t blanche at the price tag may still want to have it in their collections, especially since it goes from 0-60 mph in 2.5 seconds. But it’s likely destined to be just a small part of the Ferrari portfolio going forward, in keeping with the company’s long-held sales strategy of using high prices and scarcity to create demand among the well-heeled.

Time will tell on the Luce. But it does represent the determination of auto companies to stick with the EV format. As we wrote just last week, the backlash in EVs sparked by U.S. President Donald Trump is really only in the U.S. Elsewhere in the world, EV’s are becoming a major percentage of sales, up to half in some countries.

While the world might not be ready for a $640,000 EV, just the fact that it exists is enough to make even the most hardened gearhead take a second look at the vast potential of the new technology. And maybe by comparison the $64,000 Tesla doesn’t seem so bad after all.

If you have ideas or suggestions for us, contact me directly at

dcallaway@callawayclimateinsights.com.

---

Tuesday’s investor insights

Green bonds buck weakness in debt markets as climate projects grow