Tesla's | ex-president advises investors | not to gamble against it. | He is not a shareholder:

When asked whether he would bet on Tesla's newfound status as a "formidable rival" to other manufacturers, the former president of the electric car giant replied he wouldn't.

"Squawk Box," asked Jon McNeill why he isn't investing in Tesla shares today since it's "priced to perfection," yet he still drives one. McNeill, a former Lyft COO, emphasized the company's healthy profit margins.

There are nearing 30% gross margins at GM, which is three times the margin level at GM and approximately six times the gross margin level at Ford, according to McNeill.

As other automakers struggle to keep up with demand, Tesla's sales have risen to historic levels despite supply chain problems.

There are many reasons why McNeill would not gamble against Tesla, including the fact that it is growing more than 70% year-over-year against GM and Ford, who are experiencing losses of about 30% year-over-year "They have $16 billion in cash resting on their balance sheet right now."

While this shows the high demand for electric cars, it also raises production worries among investors. Tesla customers who purchase a vehicle frequently have to wait months before getting it.

According to McNeill, the firm has "proved they can build more than one plant today and produce at volume," adding that Tesla's Shanghai facility is now producing so much that it is exporting back to North America. This company's capability to expand output to meet demand should be closely monitored, he said.

According to McNeill, the introduction of hybrid or electric cars by other manufacturers only "opens more eyes to EVs". Although Tesla has a dominating market share in the United States, with a 65 percent share, they only have a 21 percent global market share and EVs only have a 4 percent global market share.

CEO of DVx Ventures, McNeill believes that electric cars are only at the beginning of a "multi-decade growth narrative" across the globe.

Tesla's shares, which have risen by more than 20% in the next year and by 100% in the last year, fell by almost 1.5% in Thursday's premarket.