It’s no secret Bob Lutz isn’t a fan of Tesla’s business model. Once again he joined a panel on CNBC to discuss the Silicon Valley automaker and made some of his boldest statement on the company yet.
Notably, he said Tesla is “going out of business” and called out Musk for deflecting on financial issues with flashy events such as the Tesla semi and Roadster reveal. In fact, he said what many people think: the new product reservations are just a way to quickly raise much-needed capital as the company burns through cash.
He followed up his first comments and said,”At this rate, they’ll never get to 2019.”
“There is no secret sauce in Tesla. They use the same lithium-ion batteries as everybody else,” he went on to say. Lutz believes all of Tesla’s current technology can easily be duplicated by any other automaker, which is exactly what the industry continues to trend towards. Numerous automakers, including General Motors, announced portfolios filled with electric cars in the near future. Cadillac predicted Tesla’s competitive advantage would soon become an industry standard years ago.
Thus far, Tesla has beaten the automotive startup odds, but it has yet to turn a consistent profit. 2018 should be a wild year for the fledgling automaker.