Bob Lutz predicts Tesla will go out of business next year.
Former General Motors vice chairman Bob Lutz has never been one to mince words about Tesla Motors. But the outspoken auto industry vet took things a step further last week, predicting Tesla could fail by 2019.
In an interview with CNBC, Lutz labeled Tesla as a "losing enterprise" that might not make it beyond next year. "The company, folks, is going out of business. At this rate they'll never get to 2019," he said.
Lutz argues that Tesla is "hemorrhaging cash" at an unsustainable rate. To his point, Tesla posted a $619 million loss during Q3 of 2017, representing the company's largest ever quarterly loss. Tesla has never been profitable on an annual basis.
Lutz also questions Tesla's technological leadership in electric vehicles. "There is no secret sauce in Tesla. They use the same lithium-ion batteries as everybody else." Lutz even went as far as to state that General Motors is actually ahead of Tesla in terms of battery-capability-per-dollar.
Despite those concerns, Tesla continues to be the darling of Wall Street, with share prices up by more than 100 percent over the last year. At this point it looks as though Tesla might be too big to fail, but we won't have to wait long to see if Lutz's prediction actually comes to fruition.