Bob Lutz has called it correctly before. Do you think he has a point, or is his intuition letting him down?

If you’re holding onto Tesla stock but are not quite sure if you should, a quick talk with Bob Lutz could push you over the edge to sell.

At least one might surmise as much after listening to the “Father of the Chevy Volt” who’s also involved with VIA Motors plug-in hybrids lay out a case for why TSLA may be topped out.

Since the California carmaker announced it was now a California energy storage business with its li-ion Powerwall units for home and industry, TSLA has gone up 25 percent over what some say is already an inflated price, but Lutz in a video clip is decidedly bearish.

Saying he has admiration for Tesla head Elon Musk, Lutz said he does not see the business case for lightweight and compact li-ion energy storage when lead acid is cheaper and will do the job.

"I think [the battery] is greatly overvalued because having batteries as backup storage has been around for hundreds of years," Lutz said in an interview on CNBC's " Squawk Box ." "I can't understand the fascination with this."

He also says Tesla’s core car business is yet “infinitely small," and the hype may be overblown.

"The company is also hemorrhaging cash," he said. "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's going to [reach]."

Lutz’s comments came in advance of Musk’s speaking at the Edison Electric Institute convention in New Orleans.


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