• 267 days Could Crypto Overtake Traditional Investment?
  • 272 days Americans Still Quitting Jobs At Record Pace
  • 274 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 277 days Is The Dollar Too Strong?
  • 277 days Big Tech Disappoints Investors on Earnings Calls
  • 278 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 279 days China Is Quietly Trying To Distance Itself From Russia
  • 280 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 284 days Crypto Investors Won Big In 2021
  • 284 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 285 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 287 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 288 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 291 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 292 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 292 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 294 days Are NFTs About To Take Over Gaming?
  • 295 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 298 days What’s Causing Inflation In The United States?
  • 299 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. News
  3. Breaking News

Is Tesla "Headed For The Graveyard?"

TSLA

Tesla is an “automobile company that is headed for the graveyard,” as it doesn’t have any advantage over the scores of electric vehicles coming from the legacy automakers and can’t recoup EV sales losses with sales of gas-fired cars, General Motors’s former vice chairman Bob Lutz told CNBC on Tuesday.

Lutz continues to believe that Tesla Model 3 will never make money because overhead costs are widely exceeding the profits from making fewer than 150,000 cars a year.

In addition, the competition coming from the German automakers Audi, Mercedes-Benz, and BMW, as well as from GM in the United States, will put additional pressure on Tesla, Lutz said.

“Tesla has no … tech advantage, no software advantage, no battery advantage. No advantages whatsoever,” Lutz told CNBC’s program Closing Bell.

Some would argue, however, that Tesla’s main advantage is Elon Musk, but his recently questionable Twitter activity even calls this advantage into question.

While legacy car makers can afford to sell EVs at a loss and recoup those losses with sales of internal combustion engine (ICE) vehicles, which still are the preferred choice in America, Tesla doesn’t have ICE sales on which to recoup EV losses, Lutz said, adding that “unless they’ve got some source of money somewhere, it’s going to be a big problem.”

“The jaws are tightening and I think in another year or two we’ll see a movie called ‘Who Killed Tesla,’ a conspiracy movie starring Leonardo DiCaprio,” Lutz told CNBC.

The comments from the former GM executive, who has been warning about Tesla going belly up for a few years now, came on the day on which a Bloomberg report said that Tesla was under criminal investigation by the U.S. Department of Justice for Elon Musk’s claims on Twitter that he was taking Tesla private, with “funding secured”. Related: Debunking The A.I. Productivity Myth

Musk backtracked on that proposal two weeks later, but the tweets had already triggered an SEC probe into Tesla and Musk about the “funding secured” claim.

Tesla said on Tuesday that:

“Last month, following Elon’s announcement that he was considering taking the company private, Tesla received a voluntary request for documents from the DOJ and has been cooperative in responding to it.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Safehaven.com

Back to homepage

Leave a comment

Leave a comment