One of the biggest names in the auto industry says Tesla gets too much hype for its 'wild ideas'
- Former General Motors executive Bob Lutz said Tesla CEO Elon Musk isn't held accountable for his "wild ideas."
- Lutz thinks Detroit auto companies need to do a better job of highlighting new and innovative projects.
- Lutz has been critical of Tesla in the past, calling the company a "losing enterprise" and predicting its downfall.
Former General Motors executive Bob Lutz has been critical of Tesla in the past, calling the company a "losing enterprise" and predicting it would go out of business.
His feelings toward the company are no surprise, given Tesla's ability to boost its stock price despite dealing with steep learning curves every time it starts to produce a new vehicle. Now, Lutz says the media doesn't hold Tesla CEO Elon Musk accountable, becoming excited by his lofty vision but not properly criticizing him when that vision doesn't become a reality.
"He keeps announcing these wild ideas, like flying to Mars, and the media covers it and then they let it go," Lutz told the Detroit Free Press. "There's no way they'd do the same if GM or Ford were announcing this same stuff."
Lutz also told the publication that Tesla gets too much credit for developing innovative technology at the expense of Detroit auto companies like Fiat Chrysler, Ford, and GM. He added that they need to get better at promoting new ideas and projects.
Tesla's ability to generate and sustain excitement paid off in 2017, as the company saw its stock price rise 40% despite well-documented production struggles. But after the company cut its Model 3 production targets and revealed that it hadn't come close to meeting its previous targets on Wednesday, it may have a more difficult time pleasing investors in 2018.