Tesla can be ‘going out of business,’ says former GM exec Bob Lutz

Tesla CEO Elon Musk shows off the Tesla Semi as he unveils the company's completely new electric semi truck during a presentation in Hawthorne, California, U.S., November 16, 2017.

Alexandria Sage | Reuters

Tesla CEO Elon Musk shows off the Tesla Semi as he unveils the company’s completely new electric semi truck during a presentation in Hawthorne, California, U.S., November 16, 2017.

Plus, there’s nothing about Tesla in which can’t be easily duplicated by various other automobile companies, he argued.

“There can be no secret sauce in Tesla. They use the same lithium-ion batteries as everybody else.”

In fact, he thinks GM might even have an advantage because its batteries are arguably more capable as well as lower cost.

Tesla revealed a completely new electric semitrailer as well as sports car at an event Thursday night. On Friday, large trucking company J.B. Hunt Transport Services said in which reserved “multiple Tesla Semi tractors” as well as Wal-Mart said in which wasgoing to test the completely new trucks.

Tesla shares were up nearly 3 percent Friday morning nevertheless gave back much of those gains, closing 0.8 percent higher.

Lutz believes the announcements were a way to deflect through the company’s financial troubles.

“They are hemorrhaging cash. They’re going to have to go for another capital raise,” he said.

Tesla did not immediately respond to a request for comment.

— CNBC’s Robert Ferris contributed to This particular report.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

8 + six =