Tesla is in a Bubble and its Going Down, Top Fund Manager Says

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Shares of the electric car maker Tesla are going to see sharp falls as interest rates increase after the coronavirus crisis, Lansdowne Partners fund manager Per Lekander told CNBC. Lekander told CNBCs Squawk Box Europe Tuesday that he thinks Tesla is in a bubble and that hes short on Elon Musks firm, meaning he will profit if the value of Teslas stock falls.

Teslas market value soared to over 800 billion in the 12 months leading up to January, before dropping to less than 600 billion in February. It now stands at around 679 billion. Some other market watchers will likely disagree with that prediction. Wedbush analyst Dan Ives, for example, believes Teslas shares will recover after a volatile start to the year.

Lekander drew comparisons to the dotcom boom of 1999. If you think about the visionaries who talked about the internet in 1999, if you now listen to them, they are actually underestimating what happened, he said. The development was even more radical than what happened. He pointed out that Cisco arguably a poster child for that period has a much higher market value today than it had in 2000. It didnt stop it from going down 80 first, he said.

The equivalent in Europe was probably Nokia, Lekander added, saying that it also went down 80. I think that is what we are going to see here in this tech spec hype space, he said.

Teslas share price increased by over 650 in 2020 with several key events helping to lift the companys stock. Last month, Tesla revealed that…

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