Tesla Model Y Is 'Terminally Ugly': Ex-GM Exec Slams Elon Musk's New EV

Debunking the hype around Tesla Model Y, former GM vice chair Bob Lutz slammed its looks as “terminally ugly "and wondered “who’s gonna buy that.”

Model Ys has been touted as Tesla’s flagship in the making and is billed as the high-volume vehicle so far.

The point was reiterated by CEO Elon Musk during the recent third-quarter earnings call where he said the crossover will outsell Model S, Model X, and Model 3 combined, per Tesla news.

Tesla is not hiding that Model Y has been created as the crossover version of the hot-selling Model 3. This is because Model Y shares 75 percent of the components of its sedan sibling.

That makes the looks similar, although Model Y is still a bit taller than the hefty Model 3. Even while acknowledging Tesla Model 3 as a success story Bob Lutz dismissed the Model Y.

“Model 3 continues to sell well. But the Model Y, I think it’s terminally ugly. I don’t know who’s gonna buy that.”

General Motors has many popular brands including Cadillac, Chevrolet, Buick, and GMC.

Identity problem

Lutz sees Model Y yet another humpback as the Tesla Model X and he fears it is neither a sport utility nor a sedan. The veteran also sees the risk of Model Y struggling to carve a definite market niche.

“I don’t think it’s going to break into a new segment. I think the sales will be largely substitutional to the Model 3,” the former GM official said.

Lutz also played down Tesla’s higher range saying the electric car maker’s edge comes from larger batteries.

“Tesla uses a lithium-ion battery that has certain energy content per kWh and everybody else has the same one. So the only reason why Tesla had more range because they had a bigger battery,” he remarked with an overview of battery market dotted with players like batteries plus.

Tesla opens new revenue niche from the sale of used cars

Meanwhile, reports said Tesla despite losing 39 percent sales in the U.S. in the third quarter has clocked robust growth on “services and other” revenue that included sales of used cars.

Revenue from services jumped 68 percent to $548 million from $326 million a year earlier, per Tesla’s latest financial filing.

Elon Musk had stated that Tesla is different from others and appreciates its aging vehicles and can offer a market for them. He also said the “full self-driving” hardware and software updates the company might deliver from late 2020 will make old cars more valuable with the potential for futuristic use as Robo-taxis.