So, why make the XO for battery operation only?
Why not keep all of its features, but, make it also with fossil-fuel capabilities.
If the vehicle was going to be worthwhile purchasing for city or local driving, then, it would be a lot more desirable if it came with longer-range driving capabilities. And, it might even have less weight to lug around, since, batteries plus electric motors are, in a lot of cases, heavier than a small 4-cylinder gas-powered engine.
Also, a shape shifting car would not lessen the amount of weight of the vehicle, which means that, no matter the size or shape, it's still costing as much when it comes to energy usage.
The biggest drawback is that, even by 2015, and perhaps for many years after that, renewable energy sources will still be a lot more expensive than the less expensive and much easier to attain, fossil fuels.
The XO may be more attractive than the current EV options, but, it will still have the same negatives when it comes to the power sources to make it go.