Christer Gardell, a Swedish billionaire and hedge fund manager, has warned that Tesla’s stock could drop as much as 95%. He shared his views in an interview with EFN, saying the market is in a bubble, and Tesla is one of its biggest examples.
Tesla’s Stock Risks
Gardell believes Tesla is the most overvalued company in the stock market. He points to CEO Elon Musk’s controversies as a major reason the stock could collapse.
“Tesla, especially now with the whole Musk circus going on everywhere, is probably the most expensive stock on the global stock exchanges right now. It could go down 95% – and maybe it should go down 95%,”
he said.
He sees Tesla as just a car company and does not understand why the market values it so highly. Tesla has expanded into energy, AI, and robotics, but he remains skeptical.
The “Eternal Bubble”
Gardell believes Tesla is part of a market that is detached from real value. He says prices are based on speculation instead of actual worth.
“I have commented that it should have burst over the past five years, but it still hasn’t. The valuation is incomprehensible,”
he said.
He warns that when the crash comes, it will be severe.
“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 said.
U.S. Stocks Overpriced, Europe Is Better
Gardell says the entire U.S. stock market is overvalued.
“American stocks have received very large flows recently. If you look at the American stock market, it is very expensive, both from a purely absolute perspective and from a historical perspective,”
he said.
He thinks European stocks offer better value.
“And the difference between American stocks and European stocks has never been greater. Normally, European stocks have had a discount of 20%, now it is 40%. And that is too high,”
he said.
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