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Listen up, Elon Musk.

Toyota Motor (TM) - Get Toyota Motor Corp. Report North America CEO Jim Lentz isn't worried about Tesla's (TSLA) - Get Tesla Inc Report low cost electric car, the Model 3.

"At gas at less than $2 a gallon, no [I'm not worried]," Lentz said in an interview with TheStreet. "I think [the Model 3] is going to be great but today less than half of one percent of the industry are pure electric vehicles."

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Lentz is also fond of Volvo's move to compete with Tesla and offer an electric version on its portfolio of cars.

"I think it's a good move on their part," Lentz added. "I think [Volvo] sells about 100,000 [vehicles] here in the U.S, - we sell about 2.5 million here in the U.S. When you have a much smaller portfolio of product, it allows you to concentrate in a much smaller niche of the marketplace."

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