“The electric car business has always been lousy. Now, it’s super lousy because the generic demand for electric vehicles is down. And here’s why this is going to kill Tesla: whether there’s consumer demand for electric vehicles out there or not, the major auto manufacturers like Ford, GM, Toyota, Volkswagen, they have to build electric cars — a certain number — in order to satisfy the requirements in about half of the US states. Those have to be jammed into the marketplace, otherwise they can no longer sell SUVs and full-size pickups and the stuff they really make money on. That is going to generically depress the prices of electric vehicles. Look at the new GM Chevy Bolt, which after federal incentives costs roughly $30,000. GM is not going to make money on that. But the majors are going to accept the losses on the electric vehicles as a necessary cost of doing business in order to sell the big gasoline stuff.”

——Bob Lutz, auto executive and consultant, “Bob Lutz Bashes Tesla Model X, Disses Electric Car Market”, Gas2

Tags: , , ,