Sep 27, 2018 8:37:44 PM
- CGX car nut
- Rennteam Master
- Loc: NWI , United States
- Posts: 5165, Gallery
- Registered on: Aug 17, 2011
- Reply to: Carlos from Spain
Re: Tesla Roadster
What's the over/under until Musk is removed from CEO of Tesla since the SEC has filed suit against him for misleading investors this afternoon?
There's a podcast in the States titled Autoline highlighting the auto industry from the Detroit area. A few nights ago, that podcast featured former General Motors Vice Chairman Bob Lutz, who remains a sprightly 87 y/o executive, working on several automotive-related projects. Lutz, who still has a solid grasp on the auto industry beyond the U.S. domestic market, made a few comments about Tesla.
First, he was very complimentary of the product but was highly critical of Musk, which echoes the sentiment of many industry knowledgeable individuals. Second, when he was asked about the prospects of the company, Lutz stated that the problem is a defective business model coupled with the instabilities of Musk. However, he did point out that the Tesla Board has the unenviable position of dealing with Musk, who unfortunately, is responsible for much of the inflated market capitalization of the company. Third, Lutz stressed that there are few acquirers for Tesla because there is nothing innovative about the company or product. He went through the analysis that value exists with the brand name but that limits sales prospects since non-automotive companies, i.e., Apple or Google, have the same issues relating to scalability that the current company faces. He stressed that the existing automakers don't need to have the brand to make a substantial push into the EV space. This argument led to a discussion of how the conventional automakers can operate with losses associated with EVs as they can rely on the profitability of the other products. He said Ford, for example, could increase its pickup truck prices by $200/unit to offset the loss in EVs.