Tesla Motors Doomed?

"Rusty Vandura - www.tinyurl.com/keepoppo" (rustyvandura)
10/29/2015 at 19:27 • Filed to: None

This guy Bob Lutz, I am certain, knows whereof he speaks with regard to fossil fuel-powered cars, but Tesla has different motivations, as do Tesla’s customers. I’m not ready to count Elon out.

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DISCUSSION (14)

Supreme Chancellor and Glorious Leader SaveTheIntegras > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:29

Lutz is just looking for attention

GhostZ > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:35

Bob has a team of financial analysts giving him a conclusion with a level of certainty, so he’s using that to make a statement.

No business is ever “doomed”, there are varying degrees of survival and adaptation. It’s very likely that Tesla as we know it will be completely different in 5-10 years than it is today. Does that mean it’s doomed?

tromoly > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:40

Tesla is like Apple computers. It’s a complete package, it works great for personal use, but for grunt work in most of business world it doesn’t offer many reason to switch over and in some instances would be a step backwards.

I’m not picking sides, let the future show where everything goes.

PatBateman > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:41

He didn’t say they were doomed, but he said that, unless changes are made to certain aspects of their business, it may be doomed.

Which I agree with.

Bob Lutz is a smart man with 40 years of experience running major auto manufacturers. I'm just some schmuck who comments on an auto enthusiast blog. Who am I to argue with him?

DoYouEvenShift > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:44

As much as I like Lutz, being an all around badass, doing great things for several car companies, etc. I wouldnt hang on everything he says. He said climate change is a hoax.

Alfalfa > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:45

It may be the “trifecta of doom” for most car companies as he says, but Tesla isn’t most car companies. They’ve done things very differently from the start.

bryan40oop > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:49

“This guy Bob Lutz”

Maximum Bob Lutz actually.

http://jalopnik.com/5975944/the-ma…

Birddog > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 19:57

Lutz just calls things as he sees (or interprets) them. He has some valid points.

TTAC had a good writeup on him back in 2011 that may help understand where he’s coming from now.

http://www.thetruthaboutcars.com/2011/09/the-te…

Rusty Vandura - www.tinyurl.com/keepoppo > Birddog
10/29/2015 at 20:07

I’m certainly no expert, but Tesla is the ONE stock I own, and what everyone bets on is Tesla changing the game. And by everyone I mean the Tesla owners who are going to have different expectations of a Tesla than they will of something out of Detroit. And even if Tesla DID fail, they’d be different from the 99 other auto manufacturer failures. At least in my opinion, unburdened as it is by mere facts...

Brian, The Life of > GhostZ
10/29/2015 at 20:10

Bob has a team of financial analysts giving him a conclusion with a level of certainty, so he’s using that to make a statement.

Does he really, or is he shooting from the hip on this one?

BugEyedBimmer - back in the Saddle Dakota Leather > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 20:13

The problem with Tesla is rooted in their lack of urgency in bringing another model to market. Let’s say that their whole shtick wasn’t electric cars, and they just came to market with one model. Even if it was spectacular, it would still just be one model. And bringing the electric point back into it, it’s a model with a price tag and infrastructure requirement that automatically excludes over 3/4s of the market. So that’s less than a quarter of the market that can even afford it, and then several more that decided to buy something else.

Without brand diffusion and diversification, no brand can exist for long. I think Elon putting his face in front of the cameras chasing the next big thing was good publicity in the beginning, but now the brand is suffering because he didn’t do the work it needed.

PatBateman > Brian, The Life of
10/29/2015 at 20:19

Even if he is, he's more than qualified to.

Birddog > Rusty Vandura - www.tinyurl.com/keepoppo
10/29/2015 at 23:06

I hear both sides. If Tesla is going to “Go Big” they aren’t going to be able to rely on the business model they have now. They’re small enough now to be able to play the “We’re a Changer” game. They will need volume at some point though.

(I have some tsla too, I bought it around the same time I openly called it “Vaporware” in the pre-Model S days.)

gmporschenut also a fan of hondas > BugEyedBimmer - back in the Saddle Dakota Leather
10/30/2015 at 00:12

managing multiple product lines without cannibalizing your own potential sales, balancing inventory, and prevent brand dilution is going to be the next giant hurdles. Will people still by a 80k model s when its sold next to the 30k model 3?