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They have had several prototypes with front wheel drive, that handled great. I think they misunderestimated (ha!) the effects of softer front suspension -- the body roll tilts the rear wheel and this gets it onto an edge, which causes oversteer? They only recently hired Pratt & Miller (a large racing company) and I think they can get it sorted.
I think they were "mainstreaming" the car, trying to broaden it's appeal, and they had just built this version a few weeks ago, leaving themselves time to only do cursory testing.
If they cannot solve this handling problem, they will fail as a car maker; pure and simple. Oh, and they certainly have to have impressive efficiency, if not win the X-Prize outright.
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