Late in April, Tesla Motors hosted an event at the company’s California Design Studio wherein CEO Elon Musk unveiled their latest product: a home energy storage battery dubbed the “Tesla Powerwall.” Much excitement followed.
But one automotive industry veteran was somewhat less than impressed with the new Tesla Powerwall: Bob Lutz. His opinions on the issue certainly have their merit, too; Lutz became a very notable public figure as the former Head of Global Product Development at General Motors before his retirement, grandfathering the Chevrolet Volt, and he remains active in the field of electrified powertrains with company VIA Motors.
So why was Mr. Bob Lutz less than enthused about the release of the new Tesla Powerwall? According to the Detroit Free Press, Lutz said last Monday morning on CNBC’s Squawk Box: “I think [the Tesla Powerwall] is greatly overvalued because having batteries as backup storage has been around for hundreds of years. I can’t understand the fascination with this.” Tesla Motors shares have, regardless, risen about 25 percent since the Tesla Powerwall unveiling.
Lutz later stated that Tesla Motors’ automotive production remains “infinitesimally small,” and went on: “The company is also hemorrhaging cash. I’m not recommending ‘sell’ because I’m not an analyst, but if I was a holder, I would think that this is the top the stock is going to reach.”
We’d remind Mr. Lutz that the idea of the electric powertrain has also been around for well over a century.
The bulk of the investing majority seems to have failed to heed Bob Lutz’s warning cries, however, with shares closing up 2.9 percent ($7.15), according to the Free Press. This put Tesla stock at $256.29 – the highest it’s been since November of 2014.