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Billionaire investor Rakesh Jhunjhunwala has hailed Tesla CEO Elon Musk as a good entrepreneur and performer, but is sceptical about Tesla’s valuation.

“Elon Musk has not given the market-cap of Tesla. It is the public who has created it. This market-cap is not going to last. But that does not take away some of the entrepreneurial capabilities or performance of Mr. Musk. The valuation of Tesla is not linked to the entrepreneurial capabilities of Musk,” he said in an interview.

Musk had become the world’s richest person, racing past Amazon CEO Jeff Bezos, after Tesla’s market cap increased to over $800 billion in January for the first time.

The current market cap of the electric-car maker fell to $650 billion after short selling in February. This slump saw Musk losing the tag of the richest person in the world.

Replying to a query, Jhunjhunwala said he is not a very favoured investor of internet companies as their prices have not climbed even after going public.

“Like Uber, after its public issue, it never went up. So, personally, I am not a very favoured investor of internet companies,” he said, adding that he would not buy stocks of companies having little or no cash flows.

Apart from Nazara, Policybazaar, Zomato, Flipkart, Delhivery, MobiKwik, BigBasket, and others are looking for an IPO ahead.

Replying to yet another query, Jhunjhunwala said crude prices will remain at $60-70 a barrel level and that the recent surge in oil prices is a temporary phenomena because of the deep freeze in the US.

Asked if sees 10 per cent growth for a long time, Jhunjhunwala said, “Growth could be 8 per cent, growth could be 12 per cent, growth could be 15 per cent, but there is going to be growth.”

 

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