Veteran Fund Manager Calls Tesla "Biggest Bubble in U.S. History," Sees 87% Downside

A veteran fund manager has labeled Tesla Inc. (TSLA) as the "biggest bubble in U.S. stock market history" and forecasts a potential 87% decline from its current price. The warning, issued on January 26, 2026, highlights extreme valuation concerns amid heightened market volatility. David Barse of XOUT Capital argues Tesla's current price embeds unrealistic growth assumptions. His firm's "XOUT" strategy explicitly excludes Tesla from its portfolio. The call echoes historical market manias, drawing a direct comparison to the Cisco Systems bubble peak in 2000, suggesting a similar catastrophic deflation is possible for the electric vehicle maker.