Tag Archives: Tesla

Tesla stock is a bubble & it is going down, top fund manager says

Shares of the US electric car producer Tesla are going to see a sharp fall as interest rates are rising after the Covid crisis, says Lansdowne Partners fund manager Per Lekander.

He told CNBC that he thinks the company is in a bubble and that he took a short position on Elon Musk’s firm, meaning he will profit if the value of Tesla’s stock drops.

Tesla’s market value surged to over $ 800 billion in the 12 months leading up to January, before sliding back to less than $ 600 billion in February. It now stands at around $ 679 billion.

“My take is that this year is going to be the comeback for the incumbents,” said Lekander, adding that German carmaker Volkswagen is the company that he’s particularly bullish on. VW is currently valued at €119 billion ($ 141 billion).

“There are a few golden nuggets, which I think are going to be long-term winners,” Lekander added. “In the short term, my guess if I’m right on the macro call that interest rates go up and the market wakes up to [the fact that] the incumbents are not as badly positioned as they think, then yes, I think Tesla is going down.”
Also on rt.com Elon Musk declares himself ‘Technoking’ of Tesla, company’s CFO now its ‘Master of Coin’ – SEC filing
Lekander also made some comparisons to the dot-com boom of 1999, saying: “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. The development was even more radical than what happened.”

He pointed out that Cisco has a much higher market value today than it had in 2000. “It didn’t stop it from going down 80% first.” The equivalent in Europe was probably Nokia, according to Lekander, as the company also went down 80%. “I think that is what we are going to see here in this tech spec hype space,” he said.

For more stories on economy & finance visit RT’s business section


India wants to lure Tesla by offering cheaper production costs than China

Presented by

As part of an effort to boost Indian production capacity the country’s transport minister has made a bold offer to US electric car maker Tesla: the cheapest manufacturing cost in the world, even lower than China.

According to Nitin Gadkari, Indian authorities would give higher concessions, if the electric vehicle (EV) pioneer started making the entire product in the country, hiring local vendors, instead of just assembling the cars.
Also on rt.com Elon Musk says he wants new Tesla Roadsters to fly ‘without, you know, killing people’
“The government will make sure the production cost for Tesla will be the lowest when compared with the world, even China, when they start manufacturing their cars in India. We will assure that,” Gadkari said in an interview with Reuters.

The offer comes several weeks after the government of the country’s south eastern state of Karnataka revealed that Tesla was planning to set up an electric-car manufacturing unit in the region. The company reportedly incorporated Tesla Motors India and Energy Private Limited with its registered office in the state capital of Bengaluru.

Gadkari added that India could become an export hub for Tesla’s products, highlighting that some 80 percent of components for lithium-ion batteries are currently being made locally.
Also on rt.com What a twist! Bitcoin investments bring Tesla more returns than sales of electric vehicles
India’s EV market is in the early stages of development. Just 5,000 out of a total 2.4 million cars purchased in the country in 2020 were electric.

Competition with China, where Tesla already produces cars, is expected to be tough. Last year, a reported 1.25 million new energy passenger vehicles, including EVs, were sold in China, out of the total sales of 20 million cars. Moreover, China accounted for more than a third of Tesla’s global sales.

For more stories on economy & finance visit RT’s business section