"Tesla's showing all the signs of a company in trouble: bleeding cash, securitized assets, and mounting inventory. It's the trifecta of doom for any automaker," wrote Bob Lutz, former vice chairman at
Other salient points he makes in the Road and Track piece include: Tesla "company stores" (Tesla stores) are "money pits" that failed when automakers like BMW tried them in the seventies; Tesla's battery technology lacks a "secret sauce;" and the Model X is a "big, expensive vehicle" with "a compromised structure to accommodate the gullwing doors," he wrote referring to the Falcon doors. He also makes the point (made countless times by others) that Tesla is losing money on an operating basis.
His advice: "I would seriously consider an entry-level model with a cheaper, range-extended hybrid driveline. Something with a much smaller battery that also looks great and drives great. Something that's electric most of the time, say 50 or 60 miles, but can carry on under gasoline power past that." (Yes, that does sound a lot like the Volt.)
Needless to say, there was pushback in the comments section. "Yawn....the problem is that Bob Lutz is a seasoned fossil car expert," wrote one commenter. Others argued the merits of Tesla's stores, while another commenter said that Tesla is the greatest brand name achievement since
It should be pointed that in 2007 it was Lutz who said that the "electrification of the automobile is inevitable." And he went on to oversee the development of the Volt plug-in hybrid as vice chairman at GM. And in the film, Revenge of the Electric Car, he credited Tesla with pushing GM to start development of the Volt. And he has also praised Tesla in the past.
