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Title : Bob Lutz Claims Tesla Is "Going Out Of Business"
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Bob Lutz Claims Tesla Is "Going Out Of Business"

Former vice chairman of General Motors, Bob Lutz, isn’t one to shy away from making bold proclamations. His latest? An assertion that Tesla is “going out of business.”

Speaking to CNBC shortly after Tesla unveiled both the next-generation Roadster and its all-electric Semi in California, Lutz claimed the event was simply a distraction to shift focus away from the brand’s production issues.

“The company, folks, is going out of business. At this rate they'll never get to 2019,” Lutz said.

According to Lutz, Tesla has no distinct advantage over any other established automakers, including when it comes to producing electric vehicles.

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

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

It’s worth noting that Lutz has been a long-time skeptic of Tesla and may have made these comments in a bid to fluctuate the value of Tesla. However, we do partially agree that Tesla may have decided to unveil the new Roadster as a way to deflect attention away from its Model 3 woes.

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