Tesla CEO Elon Musk speaks at the China-made Tesla Model 3 delivery ceremony in Shanghai, East China on January 7, 2020.
Ding Ting | Xinhua News Agency | Getty Images
Shares in electric vehicle maker Tesla are expected to drop sharply due to rising interest rates following the coronavirus crisis, Lansdowne Partners fund manager Per Lecander told CNBC.
Lekander told CNBC Squawk Box Europe on Tuesday that he thinks Tesla is in a bubble and lacks Elon Musk’s firm, which means he will make a profit if Tesla’s share price falls.
Tesla’s market value surged to over $ 800 billion in the 12 months to January and then fell to less than $ 600 billion in February. Now it is about $ 679 billion.
“I believe this year will be a comeback for traditional operators,” Lekander said, naming the EUR 119 billion ($ 141 billion) German carmaker Volkswagen as a company he is particularly optimistic about.
“There are a few gold nuggets that I think will be long term winners. But in the short term, I guess if I’m right about the macro call, interest rates go up and the market wakes up to (The point is) the current players aren’t as badly positioned as they think, then yes, I think Tesla is falling. “.
Some other market watchers are likely to disagree with this prediction. Wedbush analyst Dan Ives, for example, believes Tesla stock will rebound from a volatile start to the year.
“Tesla’s success in ramping up its EV initiatives and demand in China in March, which will catalyze stock gains after a shaky January and stable February,” Ives said Monday.
Tesla did not immediately respond to CNBC’s request for comment.
Lekander drew comparisons to the 1999 dot-com boom.
“If you think of the visionaries who talked about the Internet in 1999, if you are listening to them now, they are actually underestimating what happened,” he said. “The development was even more radical than what happened.”
He noted that Cisco – perhaps an example of that period – has a much higher market value today than it did in 2000. “It didn’t stop her from dropping 80% at first,” he said.
Likewise, Nokia was likely in Europe, Lekander added, saying it also dropped 80% in price.
“I think this is what we’ll see here in this hype space of technical specifications,” he said.
Tesla stock snapshot
Tesla reported last month that it had bought $ 1.5 billion worth of bitcoins. Research firm Wedbush estimates the company has already made a $ 1.2 billion return on its investment.
Tesla officially gave CEO Musk the “Technoking of Tesla” title in a new regulatory filing on Monday.
According to Tesla, Musk will retain the position of CEO. Zach Kirkhorn, the company’s chief financial officer, also received a new title: Coin Master.
“We think this hints that Musk sees Tesla more as a technology disruptor of the future, especially with robotic taxis, FSD (fully autonomous driving) and huge advances in battery technology on the horizon at Tesla,” Ives said.