The CEO of luxury vehicle maker, Lamborghini reportedly announced his observation that canceling the company's EV plans was the correct choice, following the severe fallout from Ferrari’s first all-electric vehicle.

Lamborghini CEO Stephan Winkelmann shared his remarks on Wednesday that the automaker's decision to kill the all-electric Lanzador and a version of its SUV prime focus to plug-in hybrid vehicles was “ the right way to go for his company. He added that every brand and company has to decide its key strategy for itself.

“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.”

“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.

Notably, shares of Ferrari dropped by 8% on Tuesday in Milan and 5.3 % in New York following the launch of the Luce on Monday in Italy.

It is pertinent to mention that the Luce was designed by former Apple design chief Jony Ive and is an artistic deviation from typical Ferraris featuring an uncluttered layout with a central screen and a bubbly exterior.

Apart from investor concerns, the vehicle came under attack from former Ferrari executive Luca di Montezemolo as well as Italian Deputy Prime Minister Matteo Salvini.