โ€˜Big Shortโ€™ Investor Michael Burry Doubles Down On Prediction Tesla Stock Could Plummet By 90%
โ€” Updated on 21 April 2022

โ€˜Big Shortโ€™ Investor Michael Burry Doubles Down On Prediction Tesla Stock Could Plummet By 90%

โ€” Updated on 21 April 2022
Garry Lu
WORDS BY
Garry Lu

UPDATE [12/11/21]: Despite only recently joining the trillion-dollar club, Scion Asset Management founder and renowned investor of The Big Short fame โ€“ Dr Michael Burry โ€“ has doubled down on his earlier prediction regarding the Tesla stock price (NASDAQ: TSLA). In a since-deleted tweet, Burry drew parallels to Amazon (NASDAQ: AMZN) during the dot-com bubble burst.

โ€œCan $TSLA fall 80-90%? After 2000, many high flyers did. $AMZN fell 95% [two] decades ago, changed its whole [business], and thrived much later.โ€

The man famously portrayed by Christian Bale then pointed out how Elon Musk himself had previously stated Tesla was overvalued back when its stock was trading at less than a sixth of the current price (adjusted for the five-for-one stock split circa August 2020). This comes as the aforementioned stock experiences a 16% slump over the past two trading days, erasing roughly $200 billion from its market cap. The culprit? A certain Twitter poll posted by a certain C-suite memelord.

Original Article โ€“ โ€˜Big Shortโ€™ Investor Michael Burry Predicts Tesla Stock Could Plummet By 90% This Year

Scion Asset Management founder and renowned investor of The Big Short fame โ€“ Dr Michael Burry โ€“ has made no secret of his stance on Tesla (NASDAQ: TSLA). Last December, Burry revealed he was shorting the electric automaker, citing the companyโ€™s โ€œcurrent ridiculous priceโ€ with comparisons to the housing bubble, before urging the masses to โ€œsell that #teslasouffleโ€. Now, the good doctor is predicting the Tesla stock could plummet as much as 90% this year without any major repercussions.

โ€œ$TSLA below $100/share by later this year will not crash the system,โ€ tweets Burry.

โ€œThere is no reflexivity in such a fall. But it would trigger the end of an era for a certain type of investing.โ€

Having adopted the online handle of โ€œCassandraโ€ โ€“ a reference to the priestess in Greek mythology cursed to share true prophecies but never to be believed โ€“ Burry later elaborated on his sentiments, stating that, โ€œโ€ฆ sometimes bubbles just pop. In fact, throughout history, that is typically what they do. No catalyst necessary. Just preconditions.โ€

https://twitter.com/michaeljburry/status/1361138928502251520

RELATED: The Service Thatโ€™ll Notify You Every Time Elon Musk Tweets About A Stock

dr michael burry scion asset management tesla stock bubble short

Earlier this month, Michael Burry also criticised Tesla for its decision to acquire US$1.5 billion in Bitcoin. His prognosis? The move was nothing more than a distraction from its troubles in China. Those tweets, however, have since been deleted.

โ€œChinese regulators summon Tesla on quality issues as consumers complain about qualityโ€ฆ but $TSLA bought $BTC. In my mindโ€™s eye, so much #digitalconfetti.โ€

Thereโ€™s certainly some credence to Burryโ€™s assertions, aside from the fact he managed to jump onboard the GameStop (NYSE: GME) short squeeze months before the mainstream hysteria and make it out with a profit pre-crash. At the start of 2020, TSLA was only trading at around US$95 per share; fast forward to January of this year, after a historic climb, TSLA is valued at over US$880 per share โ€“ representing growth in the way of 826% and cementing Elon Muskโ€™s status as worldโ€™s richest man. At the time of this writing, the Tesla market capitalisation is comfortably in the aerospace of US$783 billion.

โ€œMy last Big Short got bigger and bigger and BIGGER too,โ€ Burry tweeted in reference to his monumental bet against the US housing market, which netted profits of US$750 million for investors of Scion Asset Management and US$100 million for his personal bank account.

โ€œEnjoy it while it lasts.โ€

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Garry Lu
WORDS by
After stretching his legs with companies such as The Motley Fool and the odd marketing agency, Garry joined Boss Hunting in 2019 as a fully-fledged Content Specialist. In 2021, he was promoted to News Editor. Garry proudly retains a blue belt in Brazilian Jiu-Jitsu, black bruises from Muay Thai, as well as a black belt in all things pop culture. Drop him a line at garry@luxity.com.au

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