VWAGY's Lamborghini Drops EV Launch, Accelerates PHEV Strategy

Volkswagen VWAGY-owned Lamborghini has dropped plans to introduce its first fully electric vehicle (EV), marking a major shift in its electrification strategy. The move comes after an internal assessment of customer demand and overall market readiness for electric supercars, with the company concluding that interest in a pure EV remains extremely limited in its core segment.

The Lanzador was unveiled in 2023 as a preview of Lamborghini’s electric future, with plans at the time to launch a fully electric model by 2029. After reassessing customer feedback and broader market conditions, the company concluded that buyers are not yet ready to adopt a fully electric supercar, prompting a reconsideration of the model’s powertrain strategy.

A key reason behind the decision is that Lamborghini buyers continue to value the emotional appeal of traditional performance cars. The sound and driving feel of combustion engines, especially V8 and V12 models, are central to the brand’s identity. Heavy investment in a pure EV under current demand conditions was considered a financial risk.

Despite scrapping the all-electric variant, Lamborghini is retaining the Lanzador name. The model will now arrive as a plug-in hybrid (“PHEV”)combining a combustion engine with electric assistance. This strategy enables the brand to lower emissions without compromising the high-performance traits that define a Lamborghini.

The shift also puts other potential EV projects on hold, including previously discussed plans for a fully electric Urus by 2029, which have now been dropped. The company intends to reassess the EV market around 2030 before reconsidering a pure electric launch, while plug-in hybrids remain central to its product roadmap.

Lamborghini is not stepping away from electrification altogether. It is working toward a fully hybrid lineup by 2030, using plug-in hybrid technology as a bridge between tightening emission regulations and its performance heritage. The company also plans to continue producing internal combustion engine models for as long as regulations permit.

Several current models already feature hybrid technology, including the Revuelto, Urus and Temerario. This strategy enables Lamborghini to cut emissions while maintaining the excitement and character associated with the brand. Overall, Lamborghini is prioritizing performance-focused hybrids over a full-electric leap, aligning its electrification pace with customer sentiment.

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VWAGY’s Zacks Rank & Other Key Picks

VWAGY currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the auto space are Ford Motor F, Modine Manufacturing MOD and Strattec Security STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.6% and 39.5%, respectively. The EPS estimate for 2026 and 2027 has improved 10 cents and 22 cents, respectively, in the past 60 days.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.3% and 19%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 1 cent and 4 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and fiscal 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.

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