Electric Car

Here Is Why A Former GM Executive Thinks Tesla Will Soon Crash And Burn

Is Tesla’s rebelliousness causing its problems?

Things always seem to be going up and down for Tesla. One week it is releasing an SUV and an autopilot system, the next, there's a nosedive due to quality issues. But throughout its history Tesla has managed to pull through major challenges and become the face of EVs. However, Bob Lutz, an ex-GM executive and a man whose name carries heavy weight in the auto industry, thinks that Tesla is doomed to fail unless it takes drastic action. “If I were sitting in Elon Musk’s seat, I would take an urgent look at cutting costs."

As the man who oversaw GM through bankruptcy, he knows about failing companies and also about failing EVs like the Chevy Volt. Lutz thinks Tesla has trouble on too many fronts and will soon cave in. He cites the decline in gas prices, the burden of company stores instead of dealer networks, and lack of an entry-level option as the source of Tesla’s woes. To fix this, Lutz tells Tesla to make an entry-level car ASAP (Model 3?) and add a hybrid drivetrain to its cars. He also thinks Tesla should sell cars to dealerships and avoid the building and management costs associated with stores. Tesla has gone through hard times before, but only time will tell how Musk’s ambitious plan for the future will play out.

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