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Elon Musk is a genius, but Tesla’s fate is ‘sealed’ over sluggish sales, claims Bob Lutz

(Credit: Megan Gale/Twitter)

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It appears that former GM Vice Chairman Bob Lutz has done a 180-degree-turn on Tesla. Just a month after praising the Model 3’s improving quality and the company’s leadership, the former GM executive changed gears, declaring Tesla’s impending doom over what he argued was the company’s “hopeless” situation. 

Lutz’s most recent comments came in an interview with German-language Swiss news outlet Handelszeitung, where he discussed his working relationship with the late Lee Iacocca, as well as his views on the advent of electric propulsion. Lutz stated that he has always been a proponent of EVs, and in this sense, he is right. The Chevrolet Volt, GM’s most successful hybrid vehicle to date, after all, was brought to the market in no small part due to Lutz. “I am convinced of the electrification. The electric motor will prevail in the industry,” he said. 

Speaking about Tesla, Lutz admitted that the company’s CEO, Elon Musk, is a brilliant, strong leader. Nevertheless, Lutz also argued that just like other intelligent people, there are things that Musk does not know, and one of these is running a car company. 

“He is brilliant, a genius. But like many very intelligent people, he does not know what he does not know. He does not know how a car company has to be run. He does not have the financial side under control. That’s why Tesla is in very bad shape. Elon got into trouble and did not listen to people who know each other. That’s the danger with such a kind of leader,” Lutz said

When asked by the publication if he does not believe in Tesla’s success, Lutz proved even more dismissive. Similar to his previous comments about Tesla prior to his Model 3 observations last month, Lutz argued that Tesla is in dire straits. The former GM Vice Chairman blasted Tesla’s lineup, from the aging Model S, the “ugly” Model X, and the Model 3, which is allegedly seeing a problem in demand. 

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“The fate of Tesla is sealed. The situation is almost hopeless, given the losses they are currently writing. Demand has given way. Tesla had 400,000 pre-orders for the Model 3. In fact, they only sold 80,000 or 90,000 of them, and they have trouble selling more. The Model S is now ten years old, and sales are sluggish. The same picture shows the Model X, the SUV with the wing doors – that’s an ugly vehicle anyway. Tesla will have about a year until each of the big global auto companies has its own fleet of electric vehicles on offer. These cars will be as good or even better than Tesla’s,” he said. 

The Tesla Model S, Model X, and Model 3.

Tesla, for its part, has issued a response to Bob Lutz’s comments, politely pointing out that Model 3 deliveries reached 77,550 units worldwide in Q2 2019 alone. Tesla has delivered 145,000 Model 3 in 2018 alone, and 128,450 more have been delivered in 2019 as of the end of the second quarter. Overall, that’s a total of 273,450 Model 3 delivered, making the upper end of Lutz’s Model 3 sales estimates just around 183,000 units off. The company also reiterated CEO Elon Musk’s point that Model 3 demand continues to be healthy. 

Quite interestingly, even Lutz’s latest negative comments against Tesla did not have any references to the build quality of the company’s vehicles. This is in line with his conclusions on his post at motoring website Road & Track last month, where he stated that “While I continue to be critical of Tesla’s business model and Musk’s strategy, it was impossible to find fault with the visual quality of that Model 3. It looked like a fiberglass model as seen in design, before the production go-ahead. In those models, the panels are not assembled: it’s all one surface, and the separations are simulated by a routed groove.”

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Cybertruck

Tesla Cybertruck chosen by Kazakhstan’s elite security force: here’s why

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Tesla Cybertruck was chosen by a Middle Eastern government agency because of its capability, safety, and other advantages that it offers over traditional pickups.

In a striking display of futuristic security technology, Kazakhstan’s State Guard Service has integrated Tesla Cybertrucks as mobile command-and-control vehicles for the Informal Summit of the Organization of Turkic States, held today in Turkistan.

The deployment, announced by Teslarati on May 14, marks one of the first known instances worldwide of the electric pickup truck being used in official state security operations.

The Cybertrucks are supporting a range of real-world tasks, including rapid response, field coordination, communications, and command functions.

Officials highlighted the vehicles’ suitability for the challenging mountainous terrain around Almaty, where superior off-road mobility allows them to navigate rugged landscapes that might challenge conventional vehicles. Their quiet electric operation enables discreet deployment, while the high onboard power output provides sustained energy for communications equipment and external devices—critical during a high-profile international gathering.

The summit brings together leaders from Turkic-speaking nations to discuss cooperation in politics, economy, and culture. Against this backdrop, the Cybertrucks stand out not only for their angular, stainless-steel exoskeleton and imposing presence but also for their practical advantages in modern security protocols.

This move underscores Kazakhstan’s push toward innovative and sustainable solutions in public safety. The Cybertruck, Tesla’s rugged all-electric pickup, was designed from the ground up for versatility, boasting impressive range, durability, and power capabilities that align well with governmental needs.

By choosing the vehicle, Kazakh authorities signal confidence in electric mobility even for demanding operational roles—potentially setting a precedent for other nations exploring green alternatives to traditional fleet vehicles.

Tesla Cybertruck too safe for even Musk’s biggest critics to ignore

As the summit unfolds on May 15, the presence of Cybertrucks symbolizes a broader shift: electric vehicles transitioning from consumer roads to critical infrastructure.

For Tesla, the development offers valuable real-world validation of the Cybertruck’s capabilities beyond civilian use. For Kazakhstan, it blends cutting-edge American engineering with national security priorities, creating a memorable visual and functional statement at this landmark regional event.

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Tesla grabs massive Las Vegas warehouse for interesting Cybercab project

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

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Credit: TechOperator | X

Tesla is beginning to construct what will be an incredibly unique project, as it is now building a 36,000-square-foot car wash just for the Cybercab in Clark County, Nevada, near Las Vegas.

Tesla quietly filed plans to build the Cybercab car wash, and on May 12, the company submitted a permit to begin renovating the “Tesla Center Cybercab Phase 2 Car Wash,” documents show.

This is not just some ordinary car wash. Instead, it’s a dedicated, high-tech maintenance hub built specifically for Tesla’s ride-hailing vehicle and the many units that will be in the fleet.

According to the permit documents, which were first spotted by MarcoRP, a Supercharger observer on X, the work involves upgrading and updating the interior and exterior of an existing 36,000-square-foot facility. Crews will construct a full car-wash enclosure, relocate tire-service equipment, and install new power raceways.

Every camera on a Tesla Cybercab must stay clean, and without a human driver to perform manual maintenance on the vehicle, this Cybercab-specific car wash will be crucial in keeping the fleet operational, safe, and effective.

Tesla has spent years perfecting unsupervised FSD, and the Cybercab – unveiled last year as a driverless, two-seater purpose-built for ride-hailing – is the physical embodiment of that vision. Industry skeptics have long questioned how a massive Robotaxi network could scale without drivers handling basic upkeep.

Tesla just answered them with a permit filing. Sources close to the project suggest this could be the first of several such hubs, with whispers of similar plans already surfacing in Texas.

A purpose-built Robotaxi wash station means fleets can cycle vehicles through cleaning, charging, and minor servicing at lightning speed with almost no human intervention. Optimus robots could eventually handle the physical work, turning the entire operation into a lights-out, 24/7 machine.

Las Vegas, with its endless tourist traffic and wide-open roads, is the perfect proving ground. Imagine stepping out of a gleaming Cybercab after a night on the Strip, knowing the same vehicle will be sparkling clean and ready for the next rider within minutes.

California hits Tesla Cybercab and Robotaxi driverless cars with new law

Critics who claimed Robotaxis would get filthy and unreliable now look shortsighted. However, it will be interesting to see how many of these types of facilities the company establishes, especially as it plans for the Robotaxi fleet to be available everywhere.

If the permit moves forward as expected, Las Vegas could witness the first large-scale, fully autonomous taxi operation complete with its own cleaning infrastructure. As soon as Tesla solves wireless charging, we’re looking at a very capable and potentially fully autonomous ride-sharing business from A to Z.

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Tesla puts Giga Berlin in Plaid Mode with new massive investment

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

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Credit: Tesla

Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.

The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.

The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.

Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.

Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.

The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.

With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.

As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.

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