Market too down on power, too excessive on Tesla

Billionaire investor Leon Cooperman advised CNBC on Tuesday that traders have grow to be too pessimistic on the power sector and too optimistic on particular person corporations like Tesla.

“I might say we’re within the early levels of knocking on the door of euphoria, however we’re not fairly [fully in] euphoria,” the founding father of Omega Advisors mentioned. “Sure elements of the market are in euphoria like Tesla. Different elements of the market, like power, are in pessimism.”

“And so I am looking for issues that make sense,” he mentioned advised CNBC’s Scott Wapner on the “Halftime Report.” Cooperman defined that some 15% of his cash is at present in power based mostly on his perception that the sector is underappreciated versus darlings like Tesla.

“I believe the market has gone overboard of their unfavorable view of power,” Cooperman mentioned. “It is like they cannot personal sufficient Tesla they usually cannot divest sufficient of their power. The actual fact is that if the financial system grows, power demand goes to develop.”

Cooperman’s feedback on Tesla comes on the heels of a historic inventory run for the electrical automotive maker after better-than-expected monetary outcomes. The inventory is up greater than 280% during the last six months between an uptick in shopping for and a large-scale brief squeeze within the fairness.

The spike in Tesla shares got here after the corporate reported fourth-quarter…