Former GM exec calls Tesla a 'losing enterprise,' and says it's 'going out of business' (TSLA)

pulse

November 17, 2017 11:51 PM

Bob Lutz's remarks come less than 24 hours after Tesla CEO Elon Musk revealed his company's first electric big rig truck and a new Tesla Roadster.

Former General Motors executive Bob Lutz panned Tesla less than 24 hours after the electric-car company revealed its first big rig truck and a new roadster.
Lutz called Tesla a "losing enterprise" and said it's "going out of business."
Tesla has had problems of late, both on its assembly lines and in the front office.

Bob Lutz, the former General Motors executive, scoffed at Tesla on Friday, calling the electric-car company a "losing enterprise" that's "going out of business."

In a terse interview on CNBC, Lutz panned the electric-car maker less than 24 hours after CEO Elon Musk unveiled the Tesla Semi — its first entry into the electric heavy-duty trucking market — and the new Tesla Roadster.

Both vehicles are expected to be equipped with Tesla's most powerful batteries to date. The Semi boasts 500 miles of range on one charge and can recharge up to 400 miles in 30 minutes, according to Tesla. Musk on Thursday night said the new Tesla Roadster would have a 200 kWh battery with a 620-mile range.

Lutz was unimpressed: "There's no secret sauce in Tesla," Lutz told CNBC. "They use the same lithium-ion batteries as everyone else." The former GM vice chairman is a longtime Tesla critic who has, like many other Tesla skeptics, questioned whether the company can stop its cash burn, stabilize its manufacturing business, and turn a profit.

And, lately, the bad news just keeps coming.

It's no secret Tesla is in production hell with the Model 3, its first mass-market offering. Tesla has also struggled to get its Gigafactory running at full speed. In the front office, the company is dealing with multiple workplace controversies that have cast an unflattering light on its corporate culture.

Tesla stock reacted positively to the slew of new, shiny things unveiled Thursday night but shaved off those gains slightly by market close on Friday.

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