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G.W

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Pull off the belt cover and check your drive belt and clean and relube your clutches. It sounds like your drive belt is fried. Replace it with a Genuine Comet Belt Only! Go to the GoKart Supply web site for belts and CVT instructions. Good luck!
I believe he has a centrifugal clutch. The Baja I had had a centrifugal clutch. It sounds like it could be a clutch issue or a carburetor issue
 

G.W

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It's hard to tell if you need a new clutch from just looking at it. Since the mill scale is gone its a good assumption that it has been over heated. It sure wouldn't hurt to replace it even if that's not your problem
 
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