Lamborghini CEO stands by canceling its own EV

There were intense reactions after the announcement. Ferrari’s Luce, CEO of rival luxury vehicle maker Lamborghini, the first fully electric vehicle, said canceling his company’s EV plans was the right choice.

Lamborghini CEO Stephan Winkelmann said on Wednesday that the automaker’s decision to discontinue the all-electric Lanzador and a version of the Urus SUV and focus on plug-in hybrid electric vehicles was “the right way to go” for his company, but added that “every brand, every company has to decide for itself.”

“Our decision to go [traditional internal combustion engine] “Adding plugins was very important to us and it worked. We don’t talk about our competitors… but everyone has their own strategy,” Winkelmann exclusively told CNBC during a virtual interview.

Winkelmann declined to comment directly on the Ferrari Luce or the response it received, but said “innovation is paramount” for success. However, he said innovation should not be done for the sake of innovation or imposed on customers.

“By observing the market… [of EVs] “Our customer type is not increasing and that is why we decided to switch from fully electric cars to plug-in hybrid cars,” he said.

Lamborghini, owned by German automaker Volkswagen, was one of many global automakers pulling back on EV investments due to weak demand.

Ferrari’s shares fell nearly 8% in Milan and 5.3% in New York on Tuesday. Luce’s opening In Italy on Monday.

Analysts said the stock backlash was driven in part by “hatred of design.”

“Ultimately, many fans are disappointed with Ferrari’s embrace of the EV concept, believing it dilutes the supercar brand that models itself around classic design and raw, internal combustion engine power,” Michael Field, chief equity strategist at Morningstar, told CNBC earlier this week.

Designed by Luce ex Apple It’s a departure from the aesthetics of typical Ferraris, including a minimalist interior with screens and a bubbly exterior, says design chief Jony Ive.

In addition to investor concerns, the vehicle has also been subject to serious criticism from former Ferrari executive Luca di Montezemolo as well as Italian Deputy Prime Minister and Minister of Transport Matteo Salvini.

“I hope they bring out the rearing horse [logo] di Montezemolo said on the sidelines of a business conference in Rome, according to Reuters.

Ferrari declined to comment on di Montezemolo’s remarks.

— CNBC’s Sam Meredith And Robert Frank contributed to this report.