News
Elon Musk is a genius, but Tesla’s fate is ‘sealed’ over sluggish sales, claims Bob Lutz
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.
“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.
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.”
Elon Musk
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.
News
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.
The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.
The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring.
This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.
The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.
ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.
“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.
“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.
News
Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade
Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.
Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.
Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.
Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error.
More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report.
Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.
Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.
Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.
“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted.
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
