Tesla is a "hope stock" with little chance of success in the car-manufacturing industry, a fund manager told CNBC on Tuesday.
"Are we living in the real world?" Tesla is just another one of those hope stocks," Peter Toogood, chief investment officer at The Embark Group, said on CNBC's "Squawk Box Europe."
Tesla's share price took a nosedive Monday after the company's Chief Executive Elon Musk abruptly halted plans to take the firm private.
Musk had shocked investors on August 7 by announcing his aim to remove Tesla from the stock market at $420 per share. The firm's shares have shed almost 16 percent off their value since.
Days after that initial announcement, Musk said that Saudi Arabia's sovereign wealth fund had approached him "multiple times" about taking the firm off the public market, lifting hopes that Tesla could raise some much-needed cash to help its drive toward profitability. Such hopes of a Saudi deal have waned since Musk's U-turn on taking Tesla private.