- “The Big Short” investor Michael Burry said Tesla stock could plunge 90% in value.
- Burry noted that Tesla CEO Elon Musk said the automaker’s stock price was “too high” last year.
- The investor’s fund held bearish put options against Tesla stock as recently as June 30.
Michael Burry suggested Tesla stock could plummet 90% in a now-deleted tweet on Tuesday. The investor of “The Big Short” fame drew a parallel to Amazon shares plunging when the dot-com bubble burst, and only soaring years later once the e-commerce giant transformed its business.
“Can $TSLA fall 80, 90%? After 2000, many high flyers did. $AMZN fell 95% 2 decades ago, changed its whole biz, and thrived much later,” Burry tweeted.
The Scion Asset Management boss noted Elon Musk himself said Tesla was overvalued last year, when the clean-energy company’s stock was trading at less than a sixth of its current price (adjusted for Tesla’s five-for-one stock split in August 2020).