AutoNation chief Mike Jackson didn’t mince words when asked this week about Tesla and its stock value relative to other automakers.
“It’s either one of the great Ponzi schemes of all time or it’s all going to work out,” Jackson said at a joint NADA/J.D. Power conference in New York. “It’s totally inexplicable, as far as its valuation.”
Bloomberg reported that Jackson, the head of America’s biggest dealership group, said the relative value of Tesla and General Motors Co. is headed for a correction with GM being undervalued.
Tesla’s market cap climbed to $50.9-billion this week; that total is roughly $64-million more than General Motors.
The electric automaker has often been characterized as a Wall Street darling as its stock value has continued to climb despite a series money-losing quarters and previous production setbacks. News reports indicate Tesla sold less than 80,000 globally last year while General Motors’ worldwide volume topped 10 million.
It wasn’t all bad from Jackson, however, as Bloomberg said the CEO also complimented the effort from Tesla founder Elon Musk to build demand for his company’s vehicles.
“You have to tip your hat that he’s created a brand that has a strong, cult-like following,” he said.
Wednesday trading had Tesla’s stock price at $305.40USD.
– with files from Bloomberg News