- Bob Lutz can't explain why Tesla's stock rose more than 250% in six months.
- Former CEO of GM, Ford, and Chrysler said in the BBC Business Daily podcast this week that Goldman Sachs analysts asked him if he "had any idea what the hell was going on."
- "Nobody can explain it," said Lutz. "It's purely psychological, or almost mass psychosis."
- Lutz has also downplayed the growth prospects of electric vehicles, arguing that by 2030 they will only make up 15% of global car sales.
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Bob Lutz has no idea why Tesla The stock rose more than 250% in six months.
Even the smartest brains on Wall Street did not, said the auto industry veteran, who was on the boards of Ford, Chrysler and General Motors throughout his career BBC Business Daily podcast this week,
"I've spoken to people at Goldman Sachs, who are usually the world's greatest experts in explaining stock prices, and they're now asking me if I have any idea what the hell is going on with Tesla stocks," he said. "Nobody can explain it, it goes so far beyond a fundamental return that every shareholder could ever expect."
Elon Musk's electric car startup currently has a market capitalization of $ 145 billion – which overshadows the combined market capitalization of Ford, Chrysler and GM of $ 103 billion. Lutz argued that the Tesla share was no longer tied to anything tangible.
"It's only driven by psychology, or almost mass psychosis," he said, warning that the rally will not last. "Ultimately, the stock price responds to the financial fundamental reality, and that day will come."
An overrated growth opportunity
In an interview, Lutz played down the market opportunity for electric vehicles. The switch from conventional to electric cars is "a fiction" because the global demand for them is largely fueled by government subsidies.
Electric vehicles are expensive and unprofitable to manufacture, Lutz added, and impractical to use because of their long charging times. As a result, he expects that they will only make up 15% of the global automotive market by 2030.
Despite his bearish view of Tesla's industry, Lutz praised the automaker's products. "There's nothing wrong with the car," he said. "It's one of the best-driving, most powerful, and best-looking premium sedans in the world."
Fund Manager, Short sellers and even politicians the alarm sounded on Tesla last week after its shares rose a third in two days. "Watch out for Tesla believers," said former presidential candidate Ralph Nader twittered,