Lamborghini Pulls Plug on Luxury EV as Drivers Cling to “Emotional Connection” with Diesel

2026-02-24 15:45:56

Well-off drivers wanting to feel the emotional connection of a petrol or diesel engine have led Lamborghini to pull the plug on its upcoming luxury electric vehicle.

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Lanzador Bites the Dust

The Volkswagen VWAPY +1.62% ▲ -owned Italian car maker said that the SUV-like EV called the Lanzador will no longer be built. It had been slated to hit the roads in 2028.

Lamborghini chief executive Stephan Winkelmann told the Times newspaper that investing heavily in full-EV development when the market and customer base are not ready would be an “expensive hobby.”

“It would be financially irresponsible toward shareholders, customers, our employees and their families,” he said. He added that the “acceptance curve” for pure EVs in its target market of well-heeled drivers was “close to zero.”

Apparently rich customers valued the “emotional experience” of their Lamborghinis — that is either the iconic design, performance on the road or the distinctive sound and feedback of the internal combustion engine.

Emotional Connection is Lost

“EVs, in their current form, struggle to deliver this specific emotional connection,” Winkelmann said.

According to Reuters, Lamborghini said that it was “fully prepared for full electric; however, market readiness within the segment is not yet aligned with this transition.”

Lamborghini said the Lanzador will be replaced by a plug-in hybrid electric vehicle (PHEV), which is currently the powertrain of choice for its main vehicles, the Urus SUV and Temerario and Revuelto supercars. The next-generation Urus, coming in 2029, will remain a PHEV despite originally being planned as another EV.

It is the latest pullback in the European EV sector.

Earlier this month Chrysler-maker Stellantis STLA +1.91% ▲ reported a €22.2 billion writedown in the second half of 2025, tied to the pullback in U.S. electric-vehicle tax incentives last September. Specifically, CEO Antonio Filosa clarified that the charges “largely reflect the cost of over-estimating the pace of the energy transition.” The executive, who was appointed Stellantis leader last May amid falling sales and profit, said that overestimation distanced the automaker from “many car buyers’ real-world needs, means and desires.”

But it is not all bad news. Demand for all-electric vehicles increased by 14% in Europe in January, while plug-in hybrids jumped by almost a third.

Ferrari RACE +5.46% ▲ is also still on track with its Luce EV set to debut this May. Bentley, also owned by VW, is still planning for its EV SUV to come out by 2027.

Is VWAPY a Good Stock to Buy Now?

Given its lack of analyst coverage, let’s look at how the VWAPY share price has fared over the last 12 months. As can be seen below, it is up 10% over that period.

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