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F150 Lightning being unveiled in a couple days is a good example of this. The F150 is the most popular vehicle in America & this has a good chance at being a pretty big success.
What crypto can I use at checkout?
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.
It's possible both of them are wrong and Tesla has fundamental value at a level they were unable to analyze. Or it's possible that Tesla's future will be determined by things beyond fundamental value. But it's also possible they're right on some timeline.
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> I won't short them tough, in the end I'm just a dog on the internet and have no clue how stonks work. To be clear, Michael Burry didn't short Tesla, he bought put options, which gives him the right but not the obligation to sell Tesla stock for a certain price, on a certain date. If the bet works against him, his options expire worthless. This puts an upper limit on his losses. If you have an actual short position,…
I'm not sure that's necessarily meaningful. Sure, you pay for optionality in a put as opposed to a short, but it may be easier and cheaper to buy a put than finance a short if you believe the stock will go down. The downside isn't unlimited if you short, since I don't think you'd be on the hook if you hit a margin call, your collateral would simply be seized and your position would be exited. I'm sure there's other i…
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'm not one to typically paraphrase billionaires, or think they're too connected to reality... but something I heard Mark Cuban say the other day was kind of "oh, shit that's true" moment for me. It was something to the affect of (I can't find the clip at the moment), "Back in 2010 we never thought we'd see a company hit $1 trillion. We never thought Apple or Amazon (et. al) would be able to continue their growth yea…
Apple has dominated high-end smartphones for over a decade. Amazon has dominated eCommerce for that time and longer.
Tesla dominates EV, which is a tiny portion of all auto sales. There is about to be huge competition in the EV space from legacy auto manufacturers and a car is not the same as a phone.
There are plenty of cars with a WAY better driving experience than a Toyota Camry but it's still the best selling sedan on the road. So really hard to believe Tesla can win by offering "premium" driving experience.
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> I won't short them tough, in the end I'm just a dog on the internet and have no clue how stonks work. To be clear, Michael Burry didn't short Tesla, he bought put options, which gives him the right but not the obligation to sell Tesla stock for a certain price, on a certain date. If the bet works against him, his options expire worthless. This puts an upper limit on his losses. If you have an actual short position,…
I'm not sure that's necessarily meaningful. Sure, you pay for optionality in a put as opposed to a short, but it may be easier and cheaper to buy a put than finance a short if you believe the stock will go down. The downside isn't unlimited if you short, since I don't think you'd be on the hook if you hit a margin call, your collateral would simply be seized and your position would be exited. I'm sure there's other i…
Similarly, with a short position, you'll be paying a borrow fee which will vary over time based on short interest.
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I'm not sure that's necessarily meaningful. Sure, you pay for optionality in a put as opposed to a short, but it may be easier and cheaper to buy a put than finance a short if you believe the stock will go down. The downside isn't unlimited if you short, since I don't think you'd be on the hook if you hit a margin call, your collateral would simply be seized and your position would be exited. I'm sure there's other i…
It's a very meaningful distinction. If you have a put option, the stock can go to the moon and back multiple times, and you can still end up in the money on the strike date. If you have a short position, you're going to get margin called on the way to the moon and it's "game over".
> $530 million bet > long puts against 800,100 shares I find the title misleading. Unless I misunderstand, Michael Burry has not actually put $530M of his money at risk. He's made a much smaller, leveraged bet. $530M is just the notional value.
Can someone ELI5 how this works to those of us who only buy and sell things? I've looked up the definitions, but I'm curious about the purposes and practical risk/reward scenarios of this particular sort of bet.
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…
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> I think they will be very successful and become a big, dominant car maker. "Big, dominant" in the same sense as maybe Ferrari: Prestigious cars for a niche audience that are willing to pay a premium for the brand.
Ferrari is way more exclusive than Tesla. I would rather imagine Tesla becoming a Jaguar - kinda exclusive but not that rare.
Porsche is perhaps a better comparison.
> Besides his “Big Short,” Burry made a killing from a long GameStop position recently as the Reddit favorite made Wall Street history with its massive short squeeze. Except I remember reading that he sold for before the price exploded [1]. So although he made a profit, he missed out on the squeeze because he sold too early. [1] https://markets.businessinsider.com/news/stocks/big-short-mi...
he was not wrong though, just too early
and buying puts integrates the timing directly into whether or not you're right. so if he's too early again, he'll be wrong.