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Fiat Chrysler’s Sergio Marchionne throws more cold water on Tesla, EVs

Fiat Chrysler CEO Sergio Marchionne has once again sounded off on industry upstart Tesla and its wunderkind boss, Elon Musk. In the process, he doubled down on FCA's reluctance to follow its competitors headlong into electrifying its vehicle fleet, saying "we're not betting the bank on going fully electric in the next decade. It won't happen." Marchionne made his comments on Monday during remarks at the New York Stock Exchange, where he was marking the 70th anniversary of Ferrari. They come as Tesla struggles to ramp up production of its Model 3 sedan, its first mass-market offering, and the company continues to hemorrhage money. Here's what he said: "We still don't have a viable model for delivering an electric car. As much as I like Elon Musk, and he's a good friend, and actually he's done a phenomenal job of marketing Telsa, I remain unconvinced of a new economic viability of the model that he's pitching. So I think we need to be careful, because when we embrace electrification, and I made comments on the fact that we lose money on every Fiat 500, the electric that we sell in the U.S. Now that's reflective of the 2011-2010 costs in terms of components. Those costs have come down. If I were to do it again, I would certainly reduce the amount of the loss, but I would not make any money. And you can't run economic entities on losses. It doesn't happen. "So how do we find a convergence of technology bringing prices of components down and allows us to price accordingly — or we need to navigate through this process in a combined way between combustion and electrification to yield at least a minimum of economic returns that allows for our continuity? The last thing you want is me to be successful selling cars for 24 months and then go bust. That's not a good story. Especially in a place like this which rewards economic success. Let's not sit here and design our own future in the tank. Let's try and do it properly. We will do all the right things. We are investing without making a lot of noise on electrification. We will combine it with combustion to yield the right level of CO2. But we're not betting the bank on going fully electric in the next decade. It won't happen." It's not the first time Marchionne has publicly expressed doubts about Tesla's business plan.

Recharge Wrap-up: Musk sees solar future, Uber sued for tips

Elon Musk and his cousin, Lyndon Rive, spoke about their ideas for solar power and energy storage at a private conference in New York. Musk, the Tesla CEO and Rive, CEO of SolarCity, said that within 10 years, every solar system SolarCity sells will come with battery storage, and that it will be cheaper than getting energy from a utility company. Tesla, which provides battery packs for SolarCity, will set aside a portion of its Gigafactory's production capacity for grid-scale energy storage. Rive says his company will be able to produce the most efficient solar panels available, while Tesla has plans for in-home energy storage that not only saves power for nighttime and cloudy days, but also looks good. Read more at The Wall Street Journal and head over to Treehugger for more commentary. Proper deployment of bike lanes could help improve the flow of traffic while making cycling safer in urban settings. In New York City, adding bike lanes improved automotive traffic according to a study. What seems to work well is putting the bike lane closest to the curb on the left side of a one-way street, with a small buffer zone and a parking lane separating it from car traffic. The addition of turning lanes, with their own traffic signals for vehicles turning left, also allows car and bike traffic to continue smoothly. Read more at Core77. Uber is facing a lawsuit over its included gratuity. The ride-hailing app charges a 20 percent tip, included in the price of the ride. The Illinois plaintiff claims, however, that Uber keeps "a substantial portion" of that gratuity for itself, rather than paying it out to the driver. The lawsuit, which is seeking group status, looks to make Uber give up any of the gratuity funds it has kept. The plaintiff is also seeking an unspecified amount of cash in damages. Read more at Bloomberg. A new study breaks down the demographics of the users of public transit. The study, called "Who's On Board 2014," Finds that ridership is mostly inverse from income, with people making over $150,000 per year bucking the trend by riding as much as those in lower brackets. Regardless of region, younger people are more likely to use public transportation, while older people prefer to drive more. African Americans are more likely to ride, with 39 percent using public transit once a week, and 22 percent commuting by transit. Whites use public transit less, with only 10 percent riding once a week, and just five percent using public transit to commute.

Tesla halts production to prep for Model X

That darling of the electric car world, Tesla, is idling production at its factory in Fremont, CA, for the first time in order to expand the factory in preparation for its future Model X crossover. The $100-million renovation will add 25 robots and upgrades to the body shop and assembly line to support the new vehicle. Since it will be offering two models simultaneously, Tesla will need to be able to keep up with the pace of demand. "This represents the single biggest investment in the plant since we really started operations and enables us for higher volumes," said Tesla spokesperson Simon Sproule to Bloomberg. The new robots will be able to boost production by 25 percent and will allow the automaker to build the Model S and Model X on the same assembly line. There won't be too much downtime at the California plant, though. The upgrades will be finished within the next two weeks. With these factory updates, the Model X may finally get its electrically powered wheels on the road. The CUV has been delayed multiple times since its announcement. It was originally supposed to be on sale in early 2014, then later in the year, but now the latest news from Elon Musk places the crossover's launch in the second quarter of 2015. Until the Model X is on sale, the renovations should also provide a nice lift in Model S assembly. In the company's first quarter financial report, Tesla said that it expected the sedan's production rate to grow from about 700 cars per week to 1,000 per week by the end of the year, with the expectation of selling a total of 35,000 of them in 2014. That should help quell demand in new markets like the UK and expansion in Europe.