Bob Lutz, former General Motors (NYSE:GM) Chairman, and Steve Wozniak, Apple (NASDAQ:AAPL) co-founder, have recently given their respective, contradicting perceptions on Tesla Motors Inc (NASDAQ:TSLA).
Tesla Motors and Socialism
Lutz has once again made controversial remarks on Tesla Motors. In his latest attack, the 84-year-old automotive industry expert compared the electric vehicle (EV) maker to socialism.
When recently asked if he thinks that the company will still be in the industry 20 years from now, he answered with a resounding “no”. Given his history of apparent disliking for the automaker, the response is not at all surprising. Lutz is confident that Tesla will no longer be around two decades from now, at least when assessed from a financial standpoint. He explained that the company is only burning people’s money. This commentary is no longer a surprising drop of a bomb; Lutz has already criticized Tesla Motors’ financial aspects in the past. However, some analysts challenge Lutz’s statement, wondering if there ever was an automotive company that didn’t burn cash during its formative years.
During his executive stint at GM, the company had experienced bankruptcy, ending up accepting a whopping $11.20-billion in bailout from the government. It is safe to say that his remarks are strongly misguided. Taxpayers actually made some money from the repayment of the nearly half-billion dollar loan of Tesla from the US Department of Energy (DOE).
Lutz’s pessimism when it comes to Tesla, has something to do with his pessimism when it comes to EVs in general. However, he has clarified earlier this year that he doesn’t dislike the concept of EVs. Not so surprisingly, Lutz noted that he is not a fan of Tesla Model X, citing poor roof structures that he believes will never work out for the best.
Lutz is currently a Katzkin Leather Interiors, Inc. Senior Advisor and a VL Productions LLC Partner. Aside from GM, he had also been part of notable companies such as Chrysler Corp., Exide Technologies, Ford Motor Corp., Old Carco LLC, VIA Motors, Inc., among others.
Tesla Motors – Industry Disruptor
Meanwhile, Wozniak has noted in a recent interview that Tesla Motors is the industry’s “biggest disruptor” today.
Wozniak has applauded Elon Musk, Tesla Motors CEO, for what he has done for the company to revolutionize the automotive industry. Prior to Tesla Motors, investing in an EV-focused carmaker had been considered as an extremely terrible idea. Now, the potential growth of the EV market continues to strengthen over time.
Wozniak, who is not a fan of luxurious vehicles, revealed his experience with Tesla Motors. Two years ago, he was encouraged by his wife to use the Tesla Model S, which is definitely well-loved by his family for its cutting-edge features. Thanks to Musk’s personal interference and encouragement when Wozniak nearly cancelled his order due to second thoughts while waiting, the Tesla Model S has now become the family favorite.
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