Denial?
Delusional?
Paranoia?
Where exactly did you come up with any of that nonsense? Especially the last 2. Where's the delusion and where's the paranoia? It was actually a fairly reasonable take on the situation, considering how long Project Titan has been rumored.
Back when the iPhone was coming out, people were right to be skeptical. They hadn't counted on a visionary CEO and brilliant designers. Apple definitely flipped the world upside down with the iPhone.
But the conditions then aren't necessarily the conditions now. Apple still probably has brilliant designers but it doesn't have a visionary CEO. And I wouldn't be too sure of brilliant designers. Not on the auto team anyway. Brilliant people don't tend to stay on projects that are languishing and/or going nowhere. Neither you nor I know, of course, but Project Titan does appear to be in that latter category. And there are some very exciting companies that are probably very attractive places to go work, where an engineer might have much greater prospects of seeing his or her efforts actually appear and change the world. Tesla being one, but definitely not the only one. Not these days.
And what exactly do you picture Apple making? Whatever you're imagining, it's mainly a daydream you've come up with, sans evidence. A self driving car? That's what I wanted them to make. But nobody's been able to make one of those.
And holy crap these electrics are expensive. Imaging Apple adding its margins on top of that.
The Volkswagen CEO's opinions aren't delusional, and they're definitely not paranoid. And they're not in denial. They seem to be fairly rational. They might be wrong. But they're far more likely to be right.