• 8 hours Jeff Bezos Doubles Down On Space Colonization Ambitions
  • 14 hours Gold Mining Stocks Stuck In Limbo
  • 1 day Executive Order Targets Huawei Over Espionage
  • 2 days Why Now May Be The Best Time Ever To Hold Gold
  • 2 days Fake News Sinks Shares In UK-Based Bank
  • 2 days De Beers To Build $468 Million Diamond Recovery Ship
  • 3 days Moody's: Turkey Faces Possible Credit Downgrade
  • 3 days Tesla's Solar Sales Are Slipping
  • 3 days Auto Industry To Get Temporary Tariff Relief
  • 3 days Welcome To The World’s Biggest Free Trade Area
  • 4 days Central Banks Are Stockpiling Gold At The Fastest Rate In Half A Decade
  • 4 days U.S.-China Impasse Threatens Rare Earth Trade
  • 4 days Wall Street Bears $1 Trillion Brunt Of Trade War
  • 4 days Mobile Sports Betting Isn’t Quite Minting Millionaires Just Yet
  • 5 days The Marijuana Industry’s Shocking Secret
  • 5 days A Generational Shift Is Quietly Unfolding In The Mining Industry
  • 5 days Pentagon To Pay $6 Billion To Help Build Border Wall
  • 5 days Beijing Backlash: Stocks Slammed, Gold Boosted
  • 6 days Market Sentiment At Its Lowest In 10 Months
  • 6 days Trader Compares Current Market Environment To 2007
The Marijuana Industry’s Shocking Secret

The Marijuana Industry’s Shocking Secret

Cannabis cultivation requires enormous amounts…

Tesla's Solar Sales Are Slipping

Tesla's Solar Sales Are Slipping

Most of the solar cells…

Executive Order Targets Huawei Over Espionage

Executive Order Targets Huawei Over Espionage

The decision to ban telecom…

Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  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