Bob Lutz, former vice chairman of General Motors, told CNBC in an interview that he thinks Tesla will go bust by 2019. This is with his view that Tesla has been getting a lot of fame but at its core is lacking a dealership network, a unique proposition which can’t be replicated and inefficient manufacturing.
These are all problems faced by Tesla these days as it tries to meet manufacturing targets for the latest Model 3 release. Bob Lutz then went on to say that even the batteries used by Tesla is the same lithium ion batteries used by other car makers which doesn’t give Tesla any competitive edge.
Tesla recently announced their electric semi as well as new roadster (video below) which garnered a lot of press attention but overall the company is literally burning through a lot of cash to keep up. Tesla is expected to raise another round of capital cash in order to keep going but in today’s world, I think Tesla being the pioneer can shoulder through the times.
Everyone so far has been amazed by the cars and vehicles which Tesla is releasing such that new style of buying behaviour is emerging (imagine putting a $1000 deposit for a car you have no idea when it will be ready).
