Skip to main content

Market Overview

Former Fisker CEO On What Tesla Needs For Success

Former Fisker CEO On What Tesla Needs For Success

Tony Posawatz knows cars.

He has more than two decades of experience in the auto industry, including time as both the CEO of Fisker Automotive and an executive at General Motors Company (NYSE: GM). Posawatz has specific expertise in the area of electric vehicles, as he oversaw product innovations for the Chevrolet Volt.

Posawatz recently joined Benzinga’s #PreMarket Prep to talk about what Tesla Motors Inc (NASDAQ: TSLA) needs to be successful.

Related Link: Why Tesla Motors Inc Isn't A Car Company

“I do have some general concerns around their ability to make a profitable model that’s a high-volume model,” he said. “I think, if you look at their dependence currently on the [Zero Emission Vehicle] credits for revenue and profit ... it’s not a business model that I think is sustainable.”

Posawatz said that instead of unveiling another high-priced vehicle at its recent event, he would preferred to have seen the automaker working toward making a lower-cost, high-volume electric vehicle. He thinks that’s one key to their future success.

Another key element that Posawatz pointed out that would be key to Tesla’s success is partnerships, because the automaker could benefit from the scale partners could provide.

“[The automotive industry] is an industry that requires a lot of capital, and scale does matter as it relates to trying to get your costs down,” he explained. “If you’re buying a million steering columns, it costs you a hell of a lot less than if you’re buying a few thousand steering columns. “

Posawatz also talked about General Motors and autonomous vehicles.

Check out his full interview here:

Don’t forget to tune in to Benzinga’s #PreMarket Prep Monday-Friday 8-9:45 a.m. ET all of the premarket info, news and data needed to start the trading day.


Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Benzinga #PreMarket Prep electric vehicles Fisker Automotive General Motors Tesla Tony PosawatzTech Interview Best of Benzinga