Tesla Motors (TSLA) Stock Is All Hype and Grossly Overvalued: Former GM Chairman

Tesla Motors (TSLA), whose stock price has surged by more than 67% year-to-date and 1,214% since its 2010 initial public offering priced at $17 a share, is all hype and CEO Elon Musk was right to say the electric car maker’s pps is “kind of high right now,” former General Motors (GM) Chairman Bob Lutz told CNBC on Wednesday.

“Elon Musk is right. It’s grossly overvalued right now,” Lutz said. “When you look at it, their total production to date is still less than one day’s production of GM or Ford (F), so it’s filled with a lot of hype.”

Currently there are 3 analysts that rate TSLA a ‘Strong Buy’, 8 rate it a ‘Buy’ and 5 rate it a ‘Hold’. No analysts rate it a sell. TSLA has a median Wall Street price target of $287.50 with a high target of $400.00.

Tesla shares rose 0.66 percent to $252.07 at 3:02 p.m. in New York. They have gained 38.45 percent y/y.

3 Comments on Tesla Motors (TSLA) Stock Is All Hype and Grossly Overvalued: Former GM Chairman

  1. Funny, when did anyone buy a stock based on what it does today? I buy on what they did and what they will do. I could care less about today. Tesla has the best looking electric car out there. They have a start on battery technology that will work. Musk has a habit of developing and spreading around technology that benefits the world, so…nano batteries, induction plates for electric roads. Miniature batteries for his spaceships. All look great for the future. Anybody else got the resources and the balls to go it alone? No? Then where’s the downside? If the nano battery play makes it, the stock will pop up over $500 in day. Probably a thousand in a year, IF he doesn’t split. So, thanks. I’ll hold on for a few years.

  2. I agree with marcusscassius, the stock is an intermediate to long term play. I can tell you as an owner, and as someone who keeps in touch with the compan, that Tesla is doing very well, thank you. They had over 40 cars delivered to our one area in 1 week. and remember, that they are selling only one model. Once they expand to sell more models and with the Gigafactory, the company’s worth will skyrocket. There are no real competitors, and even if they materialize, the company is THE electric car brand and pure quality. I will continue to buy.

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