Tesla is in a bubble and it’s going down, says Per Lekander fund manager
Per Lekander, Lansdowne Partners fund manager told CNBC that the shares of the electric auto company Tesla are going to see sharp falls because the interest rates increasing after the pandemic crisis.
He added that he thinks Tesla is in a big bubble and that he is short on Tesla stocks.
There are many other investors that believe Tesla is in a bubble such as the legendary investor Michael Burry, made famous in the film and book “The Big Short”. Michael Burry said in a deleted tweet : “Well, my last Big Short got bigger and bigger and BIGGER too,” Burry said Thursday in a now-deleted tweet. “Enjoy it while it lasts.”
Tesla’s market cap saw a big increase to over $800 billion in the last 12 months, with a single stock worth more than $880 in January, before starting to drop to current price of $676.
Lekander is betting on the German carmaker Volkswagen, which is currently valued at $141 billion, as he is bullish on
“My take is that this year is going to be the comeback for the incumbents,” said Lekander, calling out German carmaker Volkswagen, which is valued at 119 billion euros ($141 billion), as one company he’s particularly bullish on.
There are of course other investors that will disagree with Tesla being in a bubble, Wedbush analyst Dan Ives believes Tesla’s shares will recover after a slow start of the year saying:
“Tesla’s success ramping its EV (electric vehicle) initiatives and demand in China for the month of March that will catalyze shares higher after a shaky January and a robust month of February,”
Lekander drew comparisons to the dot-com boom that happened in 1999, also making references to Nokia saying it was the equivalent in Europe when it went down 80%.
“I think that is what we are going to see here in this tech spec hype space,” he said.
Last month, Tesla announced that it had purchased Bitcoin worth of $1.5 billion which had a big price increase since their announcement and Tech research firm Wedbush believes that Tesla already made a big profit on it’s bitcoin purchase.
Do you think Tesla is in a bubble and will go down in the future ?