They seem to be sticking their heads in the sand and hoping that EVs go away.
They have a legitimate gripe. The regulators are forcing them to sell the car at a loss by regulating the price in relation to other cars that they sell which forces Fiat to either eat $14,000 for every 500e sold or raise the prices on all of their non-electric vehicles to compensate. Who gets hurt by this? It isn't the rich man driving his luxury Tesla Model S. No, it's the middle and working class Californians who pay for this subsidy with higher prices on low and mid market vehicles. California has found yet another back door way to tax the middle class while leaving the rich untouched. What will they think of next?
Rather than seeing how Tesla is doing and worrying about the affordable model coming in a year or two
The affordable model is always two years away with Tesla. Frankly, I don't think that Musk cares very much about offering something that the average American can afford. Oh, he'll pay lip service to that idea because doing so is politically correct, but privately he almost certainly doesn't care. Actually it makes sense that the Model S costs $70,000+. It's not so much environmentally friendly as it is a way for rich people to enjoy some conspicuous luxury consumption. It's conspicuous because it's Tesla and luxury because it's both expensive and impractical. The rich driver of the Model S is signaling to the average peasant that he can afford to spend $70,000+ on an impractical car, driven on weekends for pleasure, while they are forced to drive a 10 year old beater or take public transportation and struggle to pay the bills.
they just churn out a lazy compliance car by shoving batteries in an ICE car, shove their fingers in their ears and hope no-one buys them.
Which is the most economically sensible thing for them to do. They know that electric cars are money losers for them, so they try to minimize their losses if they cannot avoid them entirely. If I were the CEO of Fiat I would order my production plants to incorporate non-removable weights into the frame of the 500e to further reduce the attractiveness of the car to potential buyers by radically reducing both the range and the cargo capacity.
Fiat Chrysler is a dinosaur, and is going to be killed off by evolution unless it makes a real effort.
I doubt that. Fiat Chrysler makes practical cars that ordinary working people can afford. In fact, the luxury car brands historically end up being bought and owned by the mass market companies. For example, Porsche, Lamborghini and Bugatti are owned by Volkswagen Group while Fiat owns Ferrari. I would be very surprised if the Tesla investors turned down an attractive buy out offer from one of the big auto groups, keen to run Tesla as a luxury brand, in the years ahead.