The first-ever production Corvette coupe, a futuristic fastback, sported one of the most unique styling elements in automotive history - a divided rear window. The rear window's basic shape had been originally conceived by Bob McLean for the Q-model. The rest of the Sting Ray design was equally stunning. Quad headlamps were retained but newly hidden - the first American car so equipped since the 1942 DeSoto. The lamps were mounted in rotating sections that matched the pointy front end with the "eyes" closed. The Corvette continued to use hidden headlamps until the C6 model debuted in 2005. Coupe doors were cut into the roof, which made entry/exit easier in such a low-slung closed car. Faux vents were located in the hood and on the coupe's rear pillars; functional ones had been intended but were cancelled due to cost considerations. The fastback design was later adopted by another GM car, the third-generation Buick Riviera that debuted in 1971, with the "Boattail" nickname applied to the larger Buick design.

The Sting Ray's interior carried a new interpretation of the twin-cowl Corvette dash motif used since 1958, It was also more practical, now incorporating a roomy glovebox, an improved heater, and the cowl-ventilation system. A full set of round gauges included a huge speedometer and tachometer. The control tower center console returned, somewhat slimmer but now containing the clock and a vertically situated radio. Luggage space was improved as well, though due to a lack of an external trunklid, cargo had to be loaded behind the seats. The spare tire was located at the rear in a drop-down fiberglass housing beneath the gas tank (which now held 20 gallons instead of 16). The big, round deck emblem was newly hinged to double as a fuel-filler flap, replacing the previous left-flank door.

Though not as obvious as the car's radical styling, the new chassis was just as important to the Sting Ray's success. Maneuverability was improved thanks to the faster "Ball-Race" steering and shorter wheelbase. The latter might ordinarily imply a choppier ride, but the altered weight distribution partly compensated for it. Less weight on the front wheels also meant easier steering, and with some 80 additional pounds on the rear wheels, the Sting Ray offered improved traction. Stopping power improved, too. Four-wheel cast-iron 11-inch drum brakes remained standard but were now wider, for an increase in effective braking area. Sintered-metallic linings, segmented for cooling, were again optional. So were finned aluminum drums, which not only provided faster heat dissipation (and thus better fade resistance) but less unsprung weight. Power assist was available with both brake packages. Evolutionary engineering changes included positive crankcase ventilation, a smaller flywheel, and an aluminum clutch housing. A more efficient alternator replaced the old-fashioned generator.

The independent rear suspension Duntov created for Sting Ray was essentially a frame-mounted differential with U-jointed half-shafts tied together by a transverse leaf spring - a design derived from the CERV I concept. Rubber-cushioned struts carried the differential, which reduced ride harshness while improving tire adhesion, especially on rougher roads. The transverse spring was bolted to the rear of the differential case. A control arm extended laterally and slightly forward from each side of the case to a hub carrier, with a trailing radius rod mounted behind it. The half-shafts functioned like upper control arms. The lower arms controlled vertical wheel motion, while the trailing rods took care of fore/aft wheel motion and transferred braking torque to the frame. Shock absorbers were conventional twin-tube units. Considerably lighter than the old solid axle, the new rear suspension array delivered a significant reduction in unsprung weight, which was important since the 1963 model would retain the previous generation's outboard rear brakes. The new model's front suspension would be much as before, with unequal-length upper and lower A-arms on coil springs concentric with the shocks, plus a standard anti-roll bar. Steering remained the conventional recirculating-ball steering design, but it was geared at a higher 19.6:1 overall ratio (previously 21.0:1). Bolted to the frame rail at one end and to the relay rod at the other was a new hydraulic steering damper (essentially a shock absorber), which helped soak up bumps before they reached the steering wheel. What's more, hydraulically assisted steering would be offered as optional equipment for the first time on a Corvette - except on cars with the two most powerful engines -and offer a faster 17.1:1 ratio, which reduced lock-to-lock turns from 3.4 to just 2.9.

Drivetrains were carried over from the previous generation, comprising four small block 327 V8s, three transmissions, and six axle ratios. Carbureted engines came in 250, 300, and 340-horsepower versions. As before, the base and optional units employed hydraulic lifters, a mild camshaft, forged-steel crankshaft, 10.5:1 compression, single-point distributor, and dual exhausts. The 300-bhp engine produced its extra power via a larger four-barrel carburetor (Carter AFB instead of the 250's Carter WCFB), plus larger intake valves and exhaust manifold. Again topping the performance chart was a 360-bhp fuel-injected V8, available for an extra $430.40. The car's standard transmission remained the familiar three-speed manual, though the preferred gearbox continued to be the Borg-Warner manual four-speed, delivered with wide-ratio gears when teamed with the base and 300-bhp engines, and close-ratio gearing with the top two powerplants. Standard axle ratio for the three-speed manual or Powerglide automatic was 3.36:1. The four-speed gearbox came with a 3.70:1 final drive, but 3.08:1, 3.55:1, 4.11:1, and 4.56:1 gearsets were available. The last was quite rare in production, however.

Corvette's designers and engineers - Ed Cole, Zora Arkus-Duntov, Bill Mitchell, and others knew that after 10 years in its basic form, albeit much improved, it was time to move on. By decade's end, the machinery would be put into motion to fashion a fitting successor to debut for the 1963 model year. After years of tinkering with the basic package, Bill Mitchell and his crew would finally break the mold of Harley Earl's original design once and for all. He would dub the Corvette’s second generation "Sting Ray" after the earlier race car of the same name (but now spelled out in separate words).

The C2 was designed by Larry Shinoda under the direction of GM chief stylist Bill Mitchell. Inspiration was drawn from several sources: the contemporary Jaguar E-Type, one of which Mitchell owned and enjoyed driving frequently; the radical Stingray Racer Mitchell designed in 1959 as Chevrolet no longer participated in factory racing; and a Mako shark Mitchell caught while deep-sea fishing. Zora Arkus-Duntov ("father of the 427 Big Block Corvette") disliked the split rear window (which also raised safety concerns due to reduced visibility) and it was discontinued in 1964, as were the fake hood vents.