Tesla Bloodbath To Continue? Hedge Funder Says 'Musk Circus' Could Lead To Stock Dropping 95%
TeslaTesla(US:TSLA) Benzinga·2025-03-10 20:44

Core Viewpoint - Tesla's stock is experiencing significant volatility, with concerns over deliveries and ongoing protests against CEO Elon Musk contributing to a decline in stock value [1][5]. Group 1: Stock Performance - Tesla stock dropped 15.4% to $222.15, with a year-to-date decline of 41.4% in 2025 and a 25% increase over the last year [7]. - The stock is now trading below its value when Trump won the 2024 election, having closed at $251.44 on November 5 and opened at $284.67 on November 6 [7]. - Tesla's stock is down over 50% from its all-time highs set in December [7]. Group 2: Market Valuation Concerns - Swedish hedge fund manager Christer Gardell believes Tesla stock could decline by as much as 95%, citing it as potentially the most expensive stock globally [2][3]. - Gardell describes Tesla as being in an "eternal bubble" and questions the sustainability of its current valuation, which he finds incomprehensible [3][4]. - He notes that the U.S. stock market is overpriced, with American stocks trading at a significant premium compared to European stocks, which are at a 40% discount [4]. Group 3: Brand Value and Reputation - Tesla's brand value fell to $43 billion, ranking 36th in a Brand Finance survey, down from 18th place and $58.27 billion in 2024 [6]. - This decline in brand value is attributed to a lack of new vehicle releases and Musk's controversial public persona, which has negatively impacted Tesla's reputation and consumer consideration [6].