Former GM Vice Chair Trashes Tesla: “Musk Is A Great Salesman But They’re Doomed. It’s Going To Fail” by Tyler Durden

Competition is coming to Tesla in the high-end electric car market and Bob Lutz think it dooms Tesla. From Tyler Durden at zerohedge.com:

For those who may have missed it, GM’s former Vice Chairman Bob Lutz dropped a whole lot of reality on some unsuspecting Tesla cheerleaders on CNBC this morning. A rather blunt Lutz shared his views, as have we on several occasions, that Tesla’s constant cash burn combined with a barrage of competitive models that are about to hit the market likely indicate that the company is “doomed.” As for Tesla’s gravity-defying stock price, Lutz attributed the company’s soaring market cap solely to Musk being the “greatest salesman in the world” along with his being “aided and abetted by some analysts.”

“I am a well known Tesla skeptic. Somehow it’s levitating and I think it’s Elon Musk is the greatest salesman in the world. He paints this vision of an unlimited future, aided and abetted by some analysts. It’s like Elon Musk has been beamed down from another planet to show us mortals how to run a company.”

“The fact is it’s a constant cash drain. They’re highly dependent on federal government and state incentives for money which constantly flows in. They have capital raises all the time.”

“Even the high-end cars that they build now cost more to build than they’re able to sell them for.”

“Mercedes, BWM, Volkswagen, GM, Audi and Porsche are all coming out with 300-mile [range] electric luxury sedans…I think they’re doomed.”

At that point, an incredulous CNBC host was forced to step in asking “what does doomed mean?”

“What does doomed mean? Their stock price comes in? They go out of business? They have regular competition like other companies? What do you mean by doomed?”

To continue reading: Former GM Vice Chair Trashes Tesla: “Musk Is A Great Salesman But They’re Doomed. It’s Going To Fail”

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