The previous president of electrical car big Tesla stated Thursday he wouldn’t guess in opposition to the corporate, noting that it is rising as a “formidable competitor” to automakers around the globe after the corporate beat third-quarter earnings expectations.

At the moment not a Tesla investor, Jon McNeill advised CNBC’s “Squawk Field” the inventory is “priced to perfection” proper now, however he stated he nonetheless drives Teslas. McNeill, additionally a former Lyft COO, highlighted robust gross margins on the firm.

“The gross margins are approaching 30%, simply to place that in perspective, that’s thrice the gross margin degree at GM, and about six instances the gross margin degree of Ford,” McNeill stated.

Regardless of provide chain points, Tesla noticed gross sales rise to document breaking numbers on the firm, at the same time as different automakers battle to maintain up with their very own demand.

“We’re up greater than 70% year-over-year versus GM and Ford, that are seeing declines of round 30% year-over-year,” McNeill stated, itemizing the a number of causes he wouldn’t guess in opposition to Tesla. “They’re sitting now on $16 billion money.”

Drivers who order autos from Tesla usually have to attend months earlier than receiving the product, chatting with the demand for the electrical autos but additionally elevating manufacturing considerations amongst buyers.

With a brand new manufacturing unit in Shanghai and two extra anticipated to open in Texas and Berlin, the corporate has “confirmed they’ll open multiple manufacturing unit now and produce at quantity,” McNeill stated, noting that Tesla’s Shanghai manufacturing unit is producing a lot that they are exporting again to North America. “So I believe the factor to keep watch over right here is their skill to extend manufacturing capability to satisfy demand,” he added.

Different automakers introducing hybrid or electrical autos of their very own simply “opens extra eyes to EVs,” in line with McNeill. “Tesla’s acquired a dominant share within the U.S., they’re at 65% market share within the U.S., 21% worldwide, however I believe that is within the context of Tesla solely having 1% market share within the world automobile market and EVs solely have 4%.”

McNeill, presently CEO of DVx Ventures, predicts the EV business is firstly of what is going to be a “multi-decade development story” for electrical autos around the globe.

Shares of Tesla — up greater than 20% in 2021 and up 100% over the previous 12 months — slipped practically 1.5% in Thursday’s premarket.