GM shouldn't have crushed its EV1: Tesla Motors CEO (VIDEO)

While appearing on ‘The Late Show with David Letterman’ yesterday, both Musk and the host criticized GM for ending its production of EV1 electric cars even when the cars' customers were loyal.

"With the benefit of hindsight, I think that (GM) should have built an EV2 rather than crushing them," Musk said Wednesday Night at the "Late Show with David Letterman. "

Musk said he invested his own financial resources, time and energy into helping create Tesla because he is trying to spur the electric car revolution.

"I really thought that the existing car companies would do this," he added.

Letterman said he felt "frustrated" that people look at electric vehicles as a breakthrough technology when have existed for around 100 years. He noted that innovation is coming through new batteries which allow a greater range and competitiveness with fuel-powered cars.

Tesla's sedan appeared on the show as well. The Model S, won't be mass produced until "a couple" of years later, Musk said. The car is the second product for the electric vehicle maker, after the Roadster sports car which has a range of 244 miles per charge. The company has sold about 1,300 Roadster cars with a price tag of $100,000 each, Musk told Letterman.

“Since the very beginning, the goal of Tesla was to make mass market electric cars. Anyone who does buy the Tesla Roadster at a $100,000 is helping pay for the development of the lower cost cars to follow," Musk said, mentioning the Model S, which already sells for half the price of the Roadster.

To watch a segment of the program click below: