An auto industry legend questioned Tesla's eye watering stock rally, and said it has 'nothing to do with reality'
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.Tuesday:"Tesla is not a very profitable company that creates a decent return for shareholders. It is always struggling for profitability, yet it has a huge market cap.
Lutz, who served as executive vice president at Ford, vice chairman at Chrysler Corporation and vice chairman of General Motors, added:"The rise in stock price and the fact that Tesla is worth more than Fiat Chrysler, General Motors and Ford combined is worth more than Volkswagen and Toyota has nothing to do with reality.
He pointed out while Tesla has"very good technology" other automotive giants such as GM, Ford, Toyota, Volkswagen, Porsche also have comparable technology. Lutz added:"Tesla may be giants in the electric car business but annually they [make] 300,000 cars compared to 10 million a year for Toyota, about 8 million a year for GM. Fiat Chrysler, Ford and GM combined [make] about 20 million a year, so Tesla is not very big," Lutz said.
The soaring stock price has also pushed the market capitalization of the company to more than $280 billion, making it theIn February this year he likened Tesla's stock market rally toRead More:
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tesla cuts Model Y price, cancels forthcoming cheaper version of SUV - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Spartan Energy surges 29% after inking $2.9 billion 'blank check' merger with Tesla competitor Fisker Inc. (SPAQ) | Markets InsiderSpartan Energy surged as much as 29% on Monday after it inked a merger agreement with Fisker Inc., an electric vehicle automotive company. Spart...
Read more »
Nearly 40,000 Robinhood day traders added Tesla shares in 4 hours Monday as the stock whipsawed (TSLA) | Markets InsiderNearly 40,000 Robinhood accounts added shares of Tesla during a four-hour period on Monday, Bloomberg reported, citing data from Robintrack.net....
Read more »
Elon Musk is now worth more than Warren Buffett as Tesla stock continues to break recordsAs of Friday, Musk was worth $70.5 billion, roughly $1 billion more than Buffett, as Tesla stock continues to break records.
Read more »
Stocks making the biggest moves after hours: Tesla, BioNTech, Moderna and moreSee which stocks are posting big moves after the bell.
Read more »