Tesla’s stock has exploded more than 250% since the start of 2020 alone, but an automotive legend who has frequently questioned the electric car maker once again slammed the firm’s breathless rally, which has made it the most valuable auto company in the world.
Bob Lutz, who held senior positions at the top 3 automakers in the United States, told CNBC’s “Squawk Box” Tuesday: “Tesla is a highly successful company that generates decent returns for shareholders. It’s still suffering from profitability, but it has a massive market capitalization.”
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He noted that while Tesla has “a lot of technology,” other automotive giants such as GM, Ford, Toyota, Volkswagen, Porsche also have comparable technology.
Lutz added: “Tesla would possibly be giants in the electric car industry, but [they manufacture] 300,000 cars each year compared to 10 million a year for Toyota, about 8 million a year for GM. Fiat Chrysler, Ford and GM combined [make] about 20 cars. millions a year, so Tesla isn’t very big,” Lutz said.
High inventory has also brought the company’s market capitalization to more than $280 billion, making it the world’s most popular automaker.
In February this year, Tesla’s inventory market rose to a “near-massive psychosis, as costs were negotiated in the diversity of $700 to $900 at the time. It is now quoted at $1516.80.
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Piper Sandler said this week on a note that he hopes the monster concentration will continue and has set a target of $2322 in action, an accumulation of more than 50% over existing levels.