‘Huge Brief’ investor Michael Burry predicts Tesla inventory will collapse just like the housing bubble: ‘Get pleasure from it whereas it lasts’

  • Michael Burry, whose lucrative bet on the US housing bubble collapse in 2007 was captured in “The Big Short,” said he expected Tesla stock to implode in a similar fashion.
  • “Well, my last big short got bigger and bigger,” tweeted the Scion Asset Management boss on Thursday, adding: “Enjoy it while it lasts.”
  • Burry pointed out that Tesla had a market cap of around $ 60 billion on Thursday, which is the total market value of General Motors.
  • The Scion boss announced in December that he was shorting out Tesla and calling the stock price “ridiculous.”
  • You can find more stories on the Business Insider homepage.

Michael Burry, the investor whose billion dollar bet against the US housing market was immortalized in Michael Lewis’ book The Big Short, predicted Tesla stock would suffer a similar decline.

“Well, my last big short got bigger and bigger,” Burry tweeted on Thursday.

Tesla’s share price rose 8% on that day alone, adding $ 60 billion to its market cap – that’s “1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados,” he continued.

“Enjoy while it lasts,” added the founder and head of Scion Asset Management.

Burry announced in December that he was selling Tesla short and called on CEO Elon Musk to capitalize on his electric vehicle company’s “currently ridiculous price” by issuing shares. “Sell the #TeslaSouffle,” he added.

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Tesla stock rose around 740% in 2020 and is already up 16% this year. This gave the automaker a larger market cap than Facebook and made Musk the richest man in the world.

Burry was portrayed by Christian Bale in the film version of “The Big Short”. He has taken the Twitter name “Cassandra”, a reference to the priestess from Greek mythology who was cursed to share true prophecies but never to be believed.

In fact, Burry was fired almost everywhere when he predicted the housing bubble would burst and began entering into credit default swaps on subprime mortgage bonds in May 2005. He was under immense pressure from investors to return their money.

A wave of mortgage defaults fueled the real estate market in 2007, and Burry personally grossed $ 100 million and made $ 750 million in profit for his investors.

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