Bob Lutz, former General Motors vice chairman blasts Tesla Motors Inc (NASDAQ:TSLA) and its co-founder Elon Musk. On a CNBC interview Wednesday, Lutz said, “Tesla supporters are like members of a religious cult,” he said. “Just like Steve Jobs was worshiped by Apple, it’s the same way with Elon Musk … seen as a new visionary god who promises this phantasmagorical future, a utopia of profitability and volume.”
Elon Musk’s plan to merge Tesla with SolarCity is “tying two sinking ships together for synergy,” he said. Musk is chairman at SolarCity and CEO of Tesla. Tesla did not respond as CNBC requested for comment. Tesla will report Q3 results Wednesday after the market close. Tesla is estimate to record a loss of 54 cents per share on revenue of $1.98 billion.
“I just don’t see anything about Tesla that gives me any confidence that business can survive,” Lutz said, arguing it could ultimately go bankrupt “unless people keep pouring new money in ad infinitum.”
“Tesla cannot fix its cash burn by selling more vehicles,” Lutz said. “If you’re not recovering labor and materials in your sell price, then doing twice as many or three times as many or four times as many doesn’t help,” he said. “The losses just get bigger and bigger.”