Tesla Stock Is In a Bubble, I'm Short - Says Top Hedge Fund Manager

March 17, 2021 6:25 AM EDT

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Tesla (NASDAQ: TSLA) stock is trading in a bubble and I’m selling the stock, Lansdowne Partners fund manager Per Lekander told CNBC.

“My take is that this year is going to be the comeback for the incumbents,” Lekander said.

Lansdowne reportedly has over $32 billion in total assets under management (AUM) spread across 36 accounts.

“There are a few golden nuggets, which I think are going to be long-term winners. But 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,” he added.

The hedge fund manager believes the market environment now is similar to the dot-com bubble 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. The development was even more radical than what happened.”

He mentioned Cisco (NASDAQ: CSCO) as a stock that was highly valued but then fell 80%.

“I think that is what we are going to see here in this tech spec hype space,” he said.

Tesla stock price corrected about 40% from the record highs set in January this year. Shares have rallied in the meantime to trade into the green for the month of March.

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