"I don't see how that's gonna work."

Bob Lutz, former GM Chairman, was interviewed a few days ago by CNBC about Tesla and he doesn't believe that Tesla will be able to shift sales entirely online, by the way of the introduction of $35,000 Model 3 Standard battery option.

Lutz is a long-standing critic of basically everything many things, including the direct and now online sales network of the Californian manufacturer. The most recent announcement about the switch to primarily online sales didn't bring much love from Lutz either.

Bob Lutz comment:

"I always said it was totally ridiculous to own your own dealership, you own the real estate, you own the people, you own the new car inventory, you own the used car inventory - a massive misallocation of company capital.

So now they're getting out of that, they're gonna close stores, they're going to try to do all the sales online.

I don't see how that's gonna work.

Who's gonna take the trade-in, who's gonna take the used cars, who's gonna provide service with no stores there."

Bob Lutz doesn't believe in Tesla's planned volume of 500,000 sales per year, especially for a sedan type of car.

Video description:

Tesla is phasing out its physical dealerships across the country and trying to shift sales to online. The company also announced that they will sell the Model 3 at $35,000. Musk says he expects to sell half a million Model 3 cars worldwide. Former G.M. Vice Chairman Bob Lutz joins "Squawk Box" to give his take on the news.

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