Video

Ex-GM Boss Bob Lutz Thinks Elon Musk Should Step Down As Tesla CEO

Bob Lutz is bad-mouthing Tesla and Elon Musk yet again.

Bob Lutz is one of Tesla’s harshest critics. After claiming the company will go out of business by 2019, the outspoken former GM executive is now calling for Elon Musk to step down from the company as CEO. Lutz made the controversial comment during CNBC’s Closing Bell, adding that Musk should be replaced by “professional management.”

"I think Elon is tired, he's worn out, he's obviously got some emotional problems. He's self-medicating," Lutz said. "He has shown some disturbing signs of being somewhat volatile and unstable. I think the right solution for Tesla at this point is to move him aside from day-to-day operations, let him have a four-week vacation and really get himself back into shape, and then appoint him non-executive chairman."

Lutz compared his suggestion with Ford’s actions in 2006, where Bill Ford Jr. stepped down as CEO and was replaced by Alan Mulally to rescue the company from a financial crisis. Ford Jr. didn’t retire from the company completely, however, and remained as chairman.

"Elon Musk is brilliant, he has the vision, but he's very poor at executing, he's poor at delegating, and he obviously has a little bit of difficulty controlling himself," Lutz added. "What he needs is a solid, blocking and tackling, good, seasoned executive to run the operation." He did at least praise Musk’s vision, adding that Tesla should "keep him as the visionary, keep him as the titular head of the company, and give him the honor and respect that as founder of the company he deserves. But that company needs professional management, and it needs it now."

NYU management professor JP Eggers was also interviewed alongside Lutz. He believes Tesla’s stock would rise if Musk was to leave the company, but this isn’t likely to happen any time soon. "I honestly have a hard time seeing him doing anything other than being completely involved or walking completely away. He's tenacious. That's what's made him successful to this point." Musk isn’t showing signs of slowing down any time soon, however.

In a recent interview with the New York Times, he admitted to working 120-hour weeks at the expense of seeing family and friends. In three years, he also believes Tesla will be able to produce an EV for $25,000. The CEO did, however, admit the Model 3’s production issues affected his physical health. While he isn’t planning to retire as chairman and CEO any time soon, he added: “If you have anyone who can do a better job, please let me know. They can have the job. Is there someone who can do the job better? They can have the reins right now.”

Latest News

SEE MORE ARTICLES
Tesla Model 3 Sedan
Starting MSRP
$49,000
VIEW ALL TRIMS AND SPECS