Bob Lutz feels that Tesla will “remain a fringe brand” until the California-based automaker can release a car that will travel 300 miles a charge. However, he is in agreement with Tesla CEO Elon Musk about one thing.
“Elon Musk is right. [Tesla Motors is] grossly overvalued right now. When you look at it, their total production to date is still less than one day’s production of General Motors or Ford, so it’s filled with a lot of hype,” the former General Motors Chairman told CNBC on Wednesday.
Lutz was agreeing with Musk’s comments earlier in the month about Tesla stock being “kind of high right now.”
When Musk made the comment, Tesla stock was trading at around $286/share. On Wednesday, Tesla stock had been trading at around $250/share.
Comments
Well nothing new here.
Elon has driven the marketing so much people got excited to buy the stock but forget the realties of the numbers Tesla has produced and need to produce to keep the price viable.
It is only a matter of time before reality hits.
To meet the demands of higher volume he will need new plants. The first one he got from California for almost free the next one he will have to pay for.
Second to sell the volume he predicts he will have to have a cheaper car and that will be difficult even more so for his volume.
The battery plant he is building need a large volume but as of yet many are not sure he will find enough customers. Also if a new type batter comes in 4 years the plant will be rendered obsolete.
Elon likes to talk about a lot of things like high speed tubes from SF to LA and that kind of stuff. He is a dreamer and while a couple dreams come true most do not.
I agree with Bob and Tesla is over priced and when the rest of the market catches up and surpasses them they will remain a fringe company or a company that will partner or sell out to one of the others.
I know Tesla and Elon have a following like Jonestown. I would recommend following true economics here and seek the truth and pass if they offer you a cup of Kool Aide.