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.