Shares of the electrical automobile maker Tesla are going to see sharp falls as rates of interest enhance after the coronavirus disaster, Lansdowne Companions fund supervisor Per Lekander informed CNBC.

Lekander informed CNBC’s “Squawk Field Europe” Tuesday that he thinks Tesla is in a bubble and that he is quick on Elon Musk’s agency, which means he’ll revenue if the worth of Tesla’s inventory falls.

Tesla’s market worth soared to over $800 billion within the 12 months main as much as January, earlier than dropping to lower than $600 billion in February. It now stands at round $679 billion.

“My take is that this yr goes to be the comeback for the incumbents,” mentioned Lekander, calling out German carmaker Volkswagen, which is valued at 119 billion euros ($141 billion), as one firm he is significantly bullish on.

“There are a number of golden nuggets, which I believe are going to be long-term winners. However within the quick time period, my guess if I am proper on the macro name that rates of interest go up and the market wakes as much as (the truth that) the incumbents aren’t as badly positioned as they suppose, then sure, I believe Tesla goes down.”

Another market watchers will probably disagree with that prediction. Wedbush analyst Dan Ives, for instance, believes Tesla’s shares will get better after a risky begin to the yr.

“Tesla’s success ramping its EV (electrical car) initiatives and demand in China for the month of March that may catalyze shares greater after a shaky January and a strong month of February,” mentioned Ives in a observe on Monday.

Tesla didn’t instantly reply to a CNBC request for remark.

Lekander drew comparisons to the dot-com increase of 1999.

“If you concentrate on the visionaries who talked in regards to the web in 1999, in case you now hearken to them, they’re really underestimating what occurred,” he mentioned. “The event was much more radical than what occurred.”

He identified that Cisco — arguably a poster youngster for that interval — has a a lot greater market worth immediately than it had in 2000.  “It did not cease it from happening 80% first,” he mentioned.

The equal in Europe was most likely Nokia, Lekander added, saying that it additionally went down 80%.

“I believe that’s what we’re going to see right here on this tech spec hype house,” he mentioned.

Tesla’s share worth elevated by over 650% in 2020 with a number of key occasions serving to to elevate the corporate’s inventory.

In Could, Tesla started production at its California manufacturing facility following a pandemic-related shutdown and legal battle with the state. In July, Tesla posted its fourth straight quarter of profit and beat supply estimates. Shares additionally bought a lift on the finish of the summer time when Tesla introduced its first ever stock split.

In December, Tesla shares soared to a record high after the electrical automobile maker introduced it was debuting on the S&P 500. However in January, the corporate missed on earnings for its fourth quarter and the inventory instantly fell round 5%.

Final month, Tesla revealed that it had bought $1.5 billion worth of bitcoin. Tech analysis agency Wedbush believes that the corporate has already made a $1.2 billion revenue on its funding.

Tesla formally gave CEO Musk the title of “Technoking of Tesla” in a brand new regulatory submitting on Monday.

Musk will retain his place as chief government officer, Tesla mentioned. Zach Kirkhorn, the corporate’s chief monetary officer, has additionally been given a brand new title: “Grasp of Coin.”

“We imagine this hints at Musk viewing Tesla extra as a expertise disruptor sooner or later particularly with robotaxis, FSD (full self-driving), and large battery expertise developments on the horizon at Tesla,” mentioned Ives.