Jeffrey Gundlach has some advice for billionaire Elon Musk. Get out of the car business.

The bond manager, who says he’d rather buy Tesla Motors Inc. shares instead of Twitter Inc., sees a 30 percent chance that the electric-vehicle maker will give speculative investors a “killer” return. Gundlachsaid he’s been trying to get together with Musk, a fellow Southern California resident, to persuade him to cut a deal with competitors in which Tesla would stop making cars and instead supply automakers’ batteries.

Tesla “could be wildly transformational the way electricity and electromagnets were,” the 54-year-old founder of DoubleLine Capital LP said yesterday in an interview with Matthew Winkler, editor-in-chief of Bloomberg News, at a forum at Bloomberg LP’s headquarters in New York. “What does Twitter create? It creates information flow but it’s not really creating anything. If you’re going to buy a high-flier, I would rather own Tesla.”

Musk, 42, Tesla’s chief executive officer, is the 121st richest person in the world with an estimated net worth of $9.8 billion, according to the Bloomberg Billionaires Index. He plans to add a mass-market electric car in about three years, powered by battery packs. Shares of the Palo Alto, California-based company have surged 38 percent this year amid a global push to sell its electric cars.

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Twitter shares dropped to their lowest price yesterday since debuting in November, slumping 18 percent to $31.85, after the microblogging service lifted restrictions on sales of shares by insiders and early investors. The stock has declined 50 percent this year after the company reported slowing user growth, raising concern that it may not be able to add more mainstream members.

Simon Sproule, a spokesman for Tesla, declined to comment.

Gundlach, known for specializing in mortgage-backed securities, has beaten 97 percent of fund peers over the past three years, according to data compiled by Bloomberg. The manager, who previously posted top returns at TCW Group Inc., was early to spot trouble in the U.S. property market and correctly predicted the subprime mortgage crisis in 2007. He told investors in 2012 to bet against Apple Inc. shares before they started falling.

The Federal Reserve, which has cut its unprecedented bond buying program to $45 billion a month from $85 billion as it seeks to ease stimulus measures that have supported markets for more than four years, may be stuck in the program known as quantitative easing as the economy won’t grow fast enough, he said.

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