Why Tesla is overvalued after 'incredible' short-term returns

Regulators will struggle to disrupt disruptive techs

Wesley Lebeau, portfolio manager at Amundi subsidiary CPR Asset Management,has dropped his position in Tesla, describing the automotive tech innovator as "overvalued".

Lebeau, who manages the CPR Invest Global Disruptive Opportunities fund, was initially impressed with the returns of his 1% position, which he bought in December. He said:"Tesla had incredible performance in the space of six or seven weeks when it went up by around 30%, but we decided to sell after it reached our target price. "The market was so enthusiastic because it had already priced in Tesla's plans to produce more than 4,000 vehicles a week by 2025 at an operating margin that is three times higher than the most profitable [original equipment manufacturers] in the world. We belie...