Ex-GM Exec: Tesla's Supporters Are Like Members Of A Cult, Treat Musk Like God

Bob Lutz, General Motors Company's GM former Vice Chairman, was a guest on CNBC to talk about Tesla Motors Inc TSLA.

Lutz believes Tesla's supporters are akin to "members of a religious cult" in the same way Steve Jobs was "worshiped" by Apple Inc. AAPL supporters.

Lutz said Tesla CEO Elon Musk is also viewed as a "visionary God who promises this fantasmic oracle future, a utopia of profitability and volume."

The only difference between Apple's founder and Tesla's founder is that Jobs "delivered" while Musk "hasn't delivered a thing except increasingly negative cash flows and an increasing lack of profitability, more and more capital spending."

Lutz also commented on Tesla's proposed acquisition of SolarCity Corp SCTY, which is essentially "tying two sinking ships together for synergy."

"I just don't see anything about Tesla that gives me any confidence that the business can survive," he said.

When pressed by CNBC's Andrew Ross Sorkin if Lutz believes Tesla will ultimately be forced into bankruptcy, he pointed out that Tesla's cash burn in the last quarter was around $250 million, which is "horrific" for a company of Tesla's size.

He added that if Tesla were to raise $500 or $750 million in a capital raise, this would only last two or three quarters. As such, Tesla's ultimate fate would be bankruptcy unless the company can line up investors who will keep pouring new money in indefinitely.