Business

‘Graveyard’: Major Auto Dealer Says Musk’s Outrageous Antics Will Be Tesla’s Ruin

REUTERS/Gene Blevins

Daily Caller News Foundation logo
Chris White Tech Reporter
Font Size:

One of the largest auto dealers in the country is convinced Tesla CEO Elon Musk is toying with consumers and playing loose with the facts as he works to mass produce inexpensive electric vehicles.

“I think when you’re skimming the Model 3 with a bait-and-switch strategy maybe it works” for a while, Mike Jackson, the outgoing CEO of AutoNation, told CNBC reporters Wednesday night. “But there’s going to be a day of reckoning.”

Musk has only built the Model 3 to sell around $50,000 rather than the $35,000 he promised people last year, Jackson noted. “If you want one at the $35,000 he may never build it for you,” he said. Production on the vehicle has sputtered recently, leading some to question Musk’s intent.

“What the mainline manufacturers are doing is taking the profits from trucks and subsidizing electric vehicles to get through the difficulties,” Jackson said. “Tesla is being subsidized by the shareholders.” (RELATED: Tesla’s Model 3 Production Deliveries Weren’t Enough To Satisfy Wall Street Analysts)

Jackson said he share GM Vice Chairman Bob Lutz’s criticisms of Tesla. Lutz told reporters Tuesday that Tesla is “headed for the graveyard” because it can’t make money on the Model 3.

Larger manufacturers can deliver the kind of products Musk claims he can, according to Jackson. “What the mainline manufacturers are doing is taking the profits from trucks and subsidizing electric vehicles to get through the difficulties,” he said. “Tesla is being subsidized by the shareholders.”

Tesla was turned upside after Musk told his Twitter followers in an Aug. 7 post that he secured “funding” to take the automaker private at $420 per share, far more than the company’s worth. His tweet followed a report suggesting Saudi Arabia became a major Tesla shareholder earlier this year. Musk eventually scuttled the idea but not before it prompted a full-blown federal investigation.

The company struggled to deliver vehicles in June. Tesla hit a one-week production goal of 5,000 Model 3 vehicle for the last week of that month. It still posted 40,740 vehicles versus analysts’ consensus expectation of approximately 51,000.

Tesla shares fell 7.2 percent shortly after the company reported its delivery mark. The sharp decline followed news that the Silicon Valley company shifted employees from Model S to meet crucial deadlines for the Model 3, a vehicle CEO Elon Musk believes will make Tesla a force inside the auto industry.

Follow Chris White on Facebook and Twitter

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel