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'The Big Short' investor Michael Burry has bet against Tesla stock, said it's a bubble about to burst, and called out Elon Musk for selling shares

Nov 18, 2021, 22:58 IST
Business Insider
Michael Burry and Elon Musk.Jim Spellman; Pool / Getty Images
  • Michael Burry has ridiculed Tesla's valuation and suggested Elon Musk knows the stock is overpriced.
  • The "Big Short" investor's fiery comments led Musk to call him a "broken clock" this week.
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Michael Burry has publicly bet against Tesla, described the automaker's stock as a bubble about to burst, and accused CEO Elon Musk of selling his company's shares not because he wants to pay taxes or appease regulators but because he knows they're overvalued.

The investor of "The Big Short" fame clearly irritated Musk, as the Tesla chief dismissed him as a "broken clock" this week. Burry promptly deleted his remaining tweets and took down his Twitter account.

Here are Burry's 12 best tweets about Tesla, Musk, and the electric-vehicle boom:

1. "What do $TSLA, $BTC, option gamma traders have in common? Rhymes with Rubble." — November 2020

2. "So, @elonmusk, yes, I'm short $TSLA, but some free advice for a good guy ... Seriously, issue 25-50% of your shares at the current ridiculous price. That's not dilution. You'd be cementing permanence and untold optionality. If there are buyers, sell that #TeslaSouffle." — December 2020

3. "Well, my last Big Short got bigger and Bigger and BIGGER too ... $TSLA $60 billion increase in market cap today alone ... 1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados ... Enjoy it while it lasts." — January 2021

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4. "$TSLA below $100/share by later this year will not crash the system. There is no reflexivity in such a fall. But it would trigger the end of an era for a certain type of investing." — February 2021

5. "$TSLA and $BTC correlation coefficient is 0.951967 over the last six months. @elonmusk going for perfect unity? Nah, Elon dreams the impossible. He is determined to break unity. Correlation > 1. And he has history on his side. $TSLA and $BTC investors can make anything happen." — February 2021

6. "Chinese regulators summon Tesla on quality issues as consumers complain about quality ... but $TSLA bought $BTC. In my mind's eye, so much #digitalconfetti." — February 2021

7. "In the SF Bay Area, $TSLA vehicles are everywhere. May need two hands to count them at a stop light. Everyone I know owns 1+, though some have gone back to ICE. I've talked to industry players, down to the mechanics. Remarkably similar to 1999 and 2006." — February 2021

8. "Fads today (#BTC, #EV, SAAS #memestocks) are like housing in 2007 and fiber/.com/comm/routers in 1999. On the whole, not wrong, just driven by speculative fervor to insane heights from which the fall will be dramatic and painful." — March 2021

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9. "Regarding what @elonmusk NEEDS to sell because of the proposed unrealized gains tax, or to #solveworldhunger, or ... well, there is the matter of the tax-free cash he took out in the form of personal loans backed by 88.3 million of his shares at June 30th." — November 2021

10. "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. May 1, 2020 - $TSLA at $163/share is 'too high' and he was not kidding, said @elonmusk." — November 2021

11. "No, @elonmusk, the true test is achieving that without massive government and electricity subsidies on the backs of taxpayers who don't own your cars." — November 2021

12. "Let's face it. @elonmusk borrowed against 88.3 million shares, sold all his mansions, moved to Texas, and is asking @BernieSanders whether he should sell more stock. He doesn't need cash. He just wants to sell $TSLA." — November 2021

Read more: The creator of a Michael Burry subreddit explains why 'The Big Short' investor's selling spree is a huge red flag — and lays out why it's a major endorsement for the few stocks he has left

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