Well known car expert Bob Lutz believes that, contrary to their current sales figures, Tesla will soon go bust. The 85-year old former chairman of General Motors spoke to a group of Vintage car collectors last week, expressing his thoughts over the successful American company.
He believes the all-electric cars could quickly become valuable collector’s items, as Tesla’s business model is close to failing. He believes they…
“… haven’t figure out the revenues have to be greater than costs… when you are perennially running out of cash you are just not running a good automobile company.
“I don’t see anything on the horizon that’s going to fix that, so those of you who are interested in collector cars may I suggest buying a Tesla Model S while they’re still available.”
Because of this, he urges people to start collecting Teslas while they’re still being produced in the Californian factory.
So has he got a point? Tesla did publish a severe revenue problem for the third quarter of 2017 where they reported a loss of $619 million. However the sales of the Model 3 are hoping to counter that once it outsells the Chevrolet Bolt which was named the most sold all-electric vehicle of 2017.
While Lutz may sound skeptical, he still speaks highly of the brand, calling the Tesla Model S, “one of the fastest, best handling, best braking sedans that you could buy in the world today. The acceleration times will beat any $350,000 European exotic.”
Hopefully Tesla can prove Lutz wrong and that the Model 3 will be able to pull Tesla back into a sound financial standing.