Former Ford, GM and Chrysler exec Bob Lutz reckons Tesla are doomed – here’s why
Bob Lutz, one of the most renowned figures in the American auto industry, recently claimed on a podcast that Tesla aren’t going to be around much longer.
Lutz, who in 2009 said the electrification of the auto industry was inevitable, reckons there are numerous issues with Tesla and thinks in the future no consumer will want their products. Below are some of his key points:
– Tesla will fail due to their “continued lack of profitability” and it’s only a matter of time before their stocks are “gonna tank”.
– Tesla doesn’t have unique technology and are using the same lithium-ion batteries as everyone else.
– Most other key manufacturers will have 300+ mile EVs on the market within the next few years.
– “All they have are some good looking electric cars that sell below cost”.
We don’t quite agree with Lutz. Tesla are burning a lot of money, but last quarter they made a profit and on top of that 2019 was their best year so far with over 367,000 vehicles sold. Whilst the build quality isn’t quite there yet, the fan base certainly is as is the charging infrastructure and tech. Yes, COVID-19 is presenting new challenges, with Tesla’s Fremont factory still closed despite protest from Musk (although he claims he’ll open it soon regardless of Alameda county orders), but we’re sure Tesla will endure for now as well as for the foreseeable future.
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Silly, silly man. I’m by no means a tesla fan boy but those reasons probably go some way to understanding why he is a ‘former’ exec of of the listed companies, who’s stock is poor right now to put it lightly. They use ‘same tech’, yet they consistently seem to produce the best real world range. The infrastructure for charging is unrivalled, which is still heavily underestimated by conventional car manufacturers today. You think tesla are going to stand still in terms of battery tech? Furthermore, it goes much further than just being ahead of the technology curve(which they are). They were a revolution to the car market not because they were the first but because they aren’t run as a car firm; they are a tech company. That’s the major difference. Therefore, they have a fanbase that is quite different to car enthusiasts. Comparing them to a company such as Apple is in many ways more accurate. The original ipod wasnt the first digital music player. The ipad wasnt the first tablet. The iphone wasnt the first touchscreen phone. Or smartphone. Apple are rarely the first to market with anything but they excute in a way that resonates with their fans and then sets trends, even when there are arguably better products out there.
I agree that tesla will face a problem but disagree to lutz reasons. I previously bought a model x p100 for 170 k dollars I was later surprised that they gave a 25k discount after 4 months which made my resale value very poor and I was left to dry THEREFORE I sold it with a 70k depreciation and I will regret my purchase forever.
Duuuuude, you bought a X P100D for 170k? That’s not the price of it
With the popularity of of Tesla over the last few years, I believe they will last for many more years to come. Sure they have had hard times, as does any new company in the beginning, but they will eventually become a smarter and healthier company.