Tesla’s stock is a ticking time bomb, warns Swedish billionaire Christer Gardell, who predicts a 95% crash due to Elon Musk’s polarizing persona and unsustainable market hype. He called U.S. equities overvalued, touting European stocks as safer bets.
Swedish billionaire and hedge fund manager Christer Gardell has been very outspoken about his belief in stock market bubbles and Tesla stock in particular. While speaking with EFN (via Teslarati), the billionaire revealed some of his thoughts on Tesla.
Recent scandals and negative feelings around Tesla CEO Elon Musk’s growing political leanings have caused the stock price to fluctuate wildly.
The electric vehicle maker’s worth could fall by 95% owing to the “circus” around its CEO, according to Gardell, who was quite forthright regarding Tesla.
Considering Musk’s recent public spectacle, he said in the interview that Tesla is currently the most expensive stock on the world’s stock markets. Adding that i t may, and perhaps should, drop 95%.
Tesla is really a vehicle firm, according to the Swedish billionaire. He is perplexed as to why the EV maker has been valued so highly by the market. To set the scene, Tesla has been expanding its energy business and exploring artificial intelligence and robots in recent years, so the company’s narrative has been evolving.
According to Gardell, the electric vehicle manufacturer has become a symbol of how the market has turned speculative and how stock prices no longer represent genuine valuations (as pointed out in a CarUp study). According to the hedge fund manager, Tesla’s “eternal bubble” ought to have popped a long time ago.
“I have commented that it should have burst over the past five years, but it still hasn’t. The valuation is incomprehensible,” he clarified. But once the fall occurs, the decline will be significant, according to the hedge fund manager.
“It’s always hard to say when. It could happen in a month, six months, a year, three years, or five years – it’s impossible to answer. Because there’s so much money dominating the stock market now, and they don’t care about the value of the shares, they speculate on price movements,” he explained.
In addition to Tesla, Gardell warned of larger dangers in the American stock market, which he said was grossly overpriced. He said that there had been massive inflows into American stocks recently. Extrapolating from both a historical and an absolute standpoint, the American stock market is extremely costly.
But Gardell said that investors would be better off putting their money into European stocks. There has never been a time when the gap between European and American stock markets was wider than it is now. He pointed out that while European stocks have historically had a 20% discount, the current 40% is excessive.
Luis Gochoco is a seasoned managing editor and writer with over a decade of experience covering politics, technology, gaming, and entertainment news. With a keen eye for breaking stories and in-depth analysis, he has established himself as a trusted voice in digital journalism. Luis is one of the key forces behind the success of GameNGuide, contributing to 12 million views through engaging and high-traffic content. He also played a pivotal role in generating 8 million views on International Business Times, shaping the platform’s technology and gaming coverage.
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