After Ferrari Luce backlash, Lamborghini CEO says canceling its own EV was the right choice

After intense backlash following the reveal of Ferrari's first all-electric vehicle, the Luce, the CEO of rival luxury vehicle maker Lamborghini said canceling his company's EV plans was the correct choice.

Lamborghini CEO Stephan Winkelmann said on Wednesday the automaker's decision to kill the all-electric Lanzador and a version of its Urus SUV to focus on plug-in hybrid electric vehicles was "the right way to go" for his company, but said "every brand, every company has to decide for themselves."

"Our decision to go from [traditional internal combustion engine] to plug-in was a very important one for us, and it worked out," Winkelmann exclusively told CNBC during a virtual interview. "We don't speak about our competitors ... but everybody has their own strategy."

Winkelmann declined to comment directly on the Ferrari Luce or the responses it has received, but said "innovation is paramount" to success. However, he said innovation should not be made for innovation's sake or forced upon customers.

"By observing the market ... we saw that the acceptance curve [of EVs] for our type of customers is not increasing, and that therefore we decided to move away from a full-electric car into a plug-in hybrid," he said.

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

Shares of Ferrari fell about 8% on Tuesday in Milan and dropped 5.3% in New York after the unveiling of the Luce on Monday in Italy.

Analysts said the stock reaction was partially due to "design hate."

"Ultimately many fans are disappointed that Ferrari is embracing the EV concept, believing it dilutes the supercar brand, which has modelled itself around classic design and raw, combustion-engine power," Michael Field, chief equity strategist at Morningstar, told CNBC earlier this week.

The Luce was designed by former Apple design chief Jony Ive and is a departure from the aesthetic of typical Ferraris, including a minimalistic interior design with screens and a bubbly exterior.

Aside from investor concerns, the vehicle faced notable criticism from former Ferrari executive Luca di Montezemolo as well as Italian Deputy Prime Minister and Transport Minister Matteo Salvini.

"I hope that they take off the prancing horse [logo] from that car," 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.