Matt Visk of Grosse Pointe leaned into a sleek Tesla Model X as his little boys climbed around the back seat.

“Tesla is doing things that should’ve been started a while back," Visk said. "They came in and just set the new standard. This is definitely the future.”

The 29-year-old web developer, who usually drives a Volkswagen GTI, carefully examined the battery-operated sport utility vehicle. Meanwhile, Kristy Hoover, 28, watched Visk and their children with a smile. “He is obsessed with (CEO) Elon Musk. He is a fan of everything he does and an electric car is his next step.”

If Tesla fails to resolve its current manufacturing problems, outlined in detail by Musk in conference call Nov. 1, it could slow adoption of the new technology in America. Nearly half a million people have placed $1,000 deposits for a vehicle that may require a wait of two years.

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The electric car manufacturer suffered its worst ever three-month loss of $619.4 million in the third quarter, as workers at its Fremont, Calif., assembly plant struggled with early production of its first mass market car with a starting price of about $35,000.

The company spent $1.1 billion on robots, tooling and other equipment during the third quarter, a rate of cash burn that has raised concern among investors. Hundreds of employees were let go. Musk also reset the company's Model 3 goal of producing 5,000 sedans per week from December 2017 to the end of March 2018.

Traditional automakers have said privately they're surprised the well-funded Tesla has been hampered in launching the Model 3. They see the long-term viability of electric vehicles as linked to the California upstart's success.

Although General Motors beat it to market with the 238-mile range Chevrolet Bolt, Tesla remains the first manufacturer to attempt high-volume production of an all-electric car. That could accelerate the already significant decline in battery cost, if Tesla's Fremont, Calif., assembly plant can make 200,000 to 300,000 Model 3's annually.

In the three months ended Sept. 30, the plant produced only 260 Model 3's.

“Tesla has done good things for the auto industry,” said Jake Fisher, director of auto testing for the non-profit Consumer Reports. He characterized Tesla as a “luxury, aspirational” vehicle while General Motors has proven electric cars can be reliable, affordable and mass produced.

After a few years of declines, sales of hybrids and plug-ins are up so far this year. Still, they only account for some 3.3% of the new vehicle market in the U.S.

Last month, GM announced plans to launch 20 new electric vehicle models by 2023. Ford said it would add 13 new electric vehicles over the next few years.

"General Motors believes in an all-electric future," said Mark Reuss, executive vice president for global product development at GM.

Ford said it will invest $4.5 billion and introduce 13 new electric vehicles globally in the next five years, including hybrid versions of the popular F-150 pickup and Mustang.

In mid-October, Consumer Reports named the Chevy Bolt as a top performer among consumers, with the same reliability rating as the pricier Tesla Model S. The Bolt, which beat Tesla's Model 3 sedan to market, is selling nearly 3,000 vehicles a month with zero incentives. GM says electric competition helps the industry.

“We need to accelerate the acceptance of electrification," said Ray Wert, head of advanced technology communications at GM. "It will require offering customers a broad range of desirable vehicles across multiple brands.”

Stephanie Brinley, a senior analyst at London-based IHS Markit, said, “Tesla got people thinking differently and exploring options more aggressively.”

While many consumers prefer gasoline-powered cars and trucks, the electric market is being driven by anti-pollution policies and consumer demand in China, Europe and California, said Paul Eichenberg, a Novi-based independent consultant.

Nations developing the new technology will create rather than lose jobs, Eichenberg said. "Tesla has demonstrated there’s a market."

Musk is a high-profile Silicon Valley visionary, a darling of Wall Street despite recent forecasts by UBS that the company could run out of cash within a year.

“We get calls from the media about Tesla’s success. What is the measure of success?" said Michelle Krebs, senior analyst at Autotrader. "They’re not profitable and they haven’t delivered the Model 3. But you have to give great credit to Tesla for being pioneers and pushing the rest of the industry more into electric.”

Tesla will see more competition from established car manufacturers, said Mark Schirmer, a senior manager at Cox Automotive.

“Porsche, BMW, Mercedes, Chevy. All are coming into the market," he said.

During his First 100 Days report to investors, Ford CEO Jim Hackett talked about why the company didn't move more quickly into battery-electric vehicles.

“We were too much focused on the now. We believed that it was an all or nothing question," Hackett said. "Now we know that there’s a future around propulsion ... It’s moving from being a fringe effort in support of environmental targets.”

Even for consumers who cannot afford the $60,000 to $125,000 price range of Tesla's first two models, the company has inspired broad interest. The Model 3 is meant to be affordable so it can compete directly with gas-powered vehicles in the entry-level luxury segments.

At the Tesla Gallery in Troy, visitors wear everything from well-worn work boots to sparkly diamonds.

“It’s just not what I expected with an electric car. Normally they’re not this good looking,” said Brad Baird, 60, a construction company owner from Walker, Minn., in town with his wife to attend an Eagles concert.

Blair Reid, 33, of Rochester Hills, a sales manager who owns a Ford Taurus, has test driven a Tesla.

“I fell in love with it," Reid said." And I’m in the market for a new car.”

She wants something that will comfortably shuttle her two kids to school, football, basketball and piano lessons.

Robert Anderson, 71, a retired GM computer engineer from Bloomfield Township who drives a Subaru, said low maintenance is a big selling point for electric cars.

Consumers are intrigued by the environmental impact of all-electric vehicles, too.

Levi Reyes, 45, an operations manager from Sterling Heights who drives a Lexus, gestured toward his son in a stroller. “I want everything to last for our kids.”

Stephanie Malouf, 26, a property manager from Grosse Pointe Park who drives a Ford Focus, said she feels Tesla has unified the Ferrari buyer with the socially-responsible buyer. Her mother is moving away from Mercedes toward Porsche, Audi or Tesla.



“My first priority is the environment,” said May Malouf, 57, of Grosse Pointe Shores. “I’ve been looking for a year and test driving. I like the idea of not having to fill up with gas all the time.”

Tesla is forever changing public perception, she said. “It has become like a push for the whole industry. “

Contact Phoebe Wall Howard: phoward@freepress.com or 313-222-6512.