Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla

Post by [deleted] » Mon, May 17, 2021, 7:25 PM UTC

tenpies wrote: post #72

paxys wrote: post #10

The only new reveal is the dollar figure. Burry has been very openly (and vocally) short on Tesla for a while now. He has been Tweeting a bunch about it since September last year. Tesla shares are up ~75% since those original Tweets. "The market can remain irrational longer than you can remain solvent" applies to both amateur traders and the most seasoned investor/genius alike.

Oh you're completely missing the nuisance of what we just learned. Sure, he's been talking short since September, but the size of his position has grown considerably since then - almost certainly timing the S&P inclusion (sorry index investors, you quite literally paid the top price for a stock that has lost almost 45% since you bought it). He's almost certainly made a killing with his position and the beauty is we d…

Post by enos_feedler » Mon, May 17, 2021, 7:27 PM UTC

benmller313 wrote: post #86

alex_young wrote: post #82

Earlier quoted context omitted.

> If you have an actual short position, your potential losses are unlimited. Isn’t this a bit like saying that the potential upside of holding any stock is unlimited?

Yes. Is that not true?

Post by rootusrootus » Mon, May 17, 2021, 7:27 PM UTC

988747 wrote: post #57

rubiquity wrote: post #11

Earlier quoted context omitted.

Short sellers aren’t pessimists. They’re realists.

It's not even about that. It's just about not wasting an opportunity to make money. Some stocks go through cycles: growth, then correction, then growth again. Shorting stock during market corrections helps you maximize your profits. I mean, I can imagine Michael Burry cashing $200M profits when Tesla price goes down, and then switching sides and going long. The most important thing in the stock markets is to remain r…

Post by karolist » Mon, May 17, 2021, 7:27 PM UTC

kikokikokiko wrote: post #58

cryptoz wrote: post #39

Earlier quoted context omitted.

Tesla isn't a car company, though. They even removed "Motors" from their name years ago - showing wider interest, and not just batteries. Solar roofing as well, and others. I don't hold TSLA right now, regretfully, I entered pre-split at $27 and sold at $200. I also think the current price is way too high, for what it's worth. WAY too high. But it's not at all about cars, at least not for me, when trying to justify t…

Take a look at the "Common Sense Skeptic" youtube channel. Tesla's purchase of Solar City is a scandal on itself, it was never a play on entering the solar roof business. It was just a bail out using Tesla's shareholders money to save Musks and his business partners (which were Musks cousins btw) investments. This channel also destroys all the hype surrounding Starship, it's a joy to watch.

Post by caconym_ » Mon, May 17, 2021, 7:28 PM UTC

akomtu wrote: post #75

turbinerneiter wrote: post #15

Teslas price is just too high. I think they will be very successful and become a big, dominant car maker. But their price only makes sense if they end up being the only car maker left. That's not realistic. Building an electric car is not that hard, especially if Tesla already did all the hard lifting for you. For a while I was thinking that the battery play - becoming the number 1 battery supplier - will justify the…

I'd think of Tesla as of an iPhone for affluent hipsters. Teslas remain connected to the manufacturer that collects extensive info on drivers (spying, some would say) and can use it for marketing or other purposes later. Teslas can be a powerful distribution channel if Musk figures a way to discreetly advertise to them right in their cars. Teslas are a golf club in a sense: a directory of important people, except tha…