Tesla is ‘headed for the graveyard,’ predicts former GM exec Bob Lutz

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Tesla CEO Elon Musk is a nice guy who doesn’t know how to run a car company, Bob Lutz, former vice chairman of General Motors, told CNBC on Tuesday.

Closing Bell.”

Lutz’s comments come after news of a criminal probe into Tesla, as well as a new competitor hitting the market in the form of Audi’s new electric car.

“The jaws are tightening and I think in another year or two we’ll see a movie called ‘Who Killed Tesla,’ a conspiracy movie starring Leonardo DiCaprio,” Lutz added.

Earlier in the day, Tesla said the Justice Department requested documents last month relating to Musk’s tweets about taking the company private. Tesla has since shelved such plans.

The acknowledgement followed a report by Bloomberg that the federal agency has opened a criminal investigation into Musk’s comments.

Telsa shares sank as much as 7.1 percent on the news, ultimately closing down more than 3 percent.

Lutz said Tesla is “hemorrhaging cash” and because of the federal investigation, the SEC will not let it make a capital raise.

He also said there is competition coming from not only Audi but Mercedes, BMW and Porsche. And those auto manufacturers can sell their cars at a loss and make up for it on sales of internal combustion vehicles.

“Tesla has no … tech advantage, no software advantage, no battery advantage. No advantages whatsoever,” he said.

Tesla did not immediately respond to a request for comment on Lutz’s remarks.

The former GM executive has been a frequent critic of Musk and has said the CEO should step aside. This also not the first time he has predicted the demise of Tesla.

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