Cars "The Big Short" investor Michael Burry: Tesla shares could fall below 100 US dollars

05:40  23 february  2021
05:40  23 february  2021 Source:   finanzen.net

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While the price of Tesla shares rose to unimaginable heights in the past year, some market participants are still skeptical of this US electric car manufacturers and bet on falling prices. With the shortseller Michael Burry one of the critics spoke up.

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• Tesla shares rose 743 percent in 2020

• "The Big Short" investor expects dramatic price slump

• Criticism of GameStop hype

Tesla price decline is set to end ushering in an era

For the Tesla share, 2020 was the most successful year since going public in 2010. For example, the shares of the electric car manufacturer under the leadership of Elon Musk rose by 743 percent last year. This year, too, the paper has so far increased 1.25 percent to 714.50 US dollars (closing price on February 22, 2021). According to hedge fund manager Michael Burry, the upward trend in Tesla shares could come to an abrupt end this year. On his Twitter profile, the investor recently stated with full conviction that the financial system was not threatened by Tesla shares falling below $ 100 later in the year, according to Business Insider reports. "But it would herald the end of an era for a certain type of investing," the portal quoted Burry as saying. In doing so, he renewed his criticism of speculative stock deals by small investors. In January, he complained that Reddit users started a run on shares in GameStop and AMC . "It should have legal and regulatory consequences," Burry wrote on the short message service, according to Business Insider. "It's unnatural, crazy, and dangerous." Shortly afterwards, however, he deleted his tweet.

In Sudan, Ethiopian refugees try to rebuild life in their camp

 In Sudan, Ethiopian refugees try to rebuild life in their camp © ASHRAF SHAZLY An Ethiopian refugee sells tea, in a transit camp in Sudan, November 26, 2020 Samarwat Tkhali, 10, has been walking around for a week the streets of "Village 8" in Sudan, where thousands of Ethiopians have taken refuge fleeing the war in Tigray. To survive, she sells the chocolate cakes bought by her father. In this miserable village, where some 15,000 Ethiopian refugees are crowded near the border, she approaches the people by asking them timidly: "Do you want to taste one?".

Bitcoin investment as a diversionary maneuver?

But also Tesla itself has often been in the field of fire of the shortseller. He also wrote in January that Tesla shares are facing significant losses and that their market value is inflated. The investor also strongly condemned the report by the electric car pioneer that he had bought Bitcoin with a value of 1.5 billion US dollars and accused Musk of trying to distract from Tesla's weaknesses in the Chinese market. "Chinese regulators called Tesla because of quality problems, as consumers complain about the quality ... but Tesla bought Bitcoin ," the financial portal quoted Burry's Twitter statements as saying. Furthermore, he described the announcement as "digital confetti" and thus accused the company of a diversionary maneuver. GLJ analyst Gordon Johnson recently made similar allegations. But Tesla is not the first target of a short attack from Burry. The Scion Capital founder achieved notoriety in 2007 through his short bet against the US real estate market, before the price bubble actually burst shortly afterwards and led to the global financial crisis, which culminated in the bankruptcy of the major US bank Lehman Brothers. The investor's successful short position was covered in Michael Lewis ‘book" The Big Short ", which was filmed in 2015 with Christian Bale in the role of Burry. Corona criticism drew Burry on Twitter - Trump ban drove him The fact that the investor lets his thoughts run free on Twitter is a relatively current development. So he only registered on the short message platform in April 2020. "Last week I became active on Twitter for the first time," he told BNN Bloomberg at the time. "I just had a lot to say and speak of my soul." The Corona crisis and the measures to contain the virus have resulted in an increased need for Burry to notify. "I went to Twitter because I was deeply saddened by a national foreclosure that is devastating the livelihoods of Americans in many ways," Burry is further quoted as saying. "I saw the prevailing narratives ignoring the masses who are not in mortal danger from COVID-19." He criticized the fact that the restrictions applied to all citizens, although he said that COVID-19 was particularly dangerous for members of risk groups. After the profile of the former US President Donald Trump was permanently blocked in early January after the storm on the US Capitol, Burry temporarily said goodbye to the platform, as reported by "cash". According to Business Insider, he expressed his latest Tesla criticism again via his Twitter profile, but it is currently again no longer accessible. Finanzen.net

The Big Short: why the comedy film is being compared to the Gamestop stock saga - and where to watch it .
The 2015 comedy drama’s cast includes Christian Bale as Michael Burry and a cameo appearance from Margot Robbie © Christian Bale takes on the role of Michael Burry in The Big Short. (Pic: PA) Comedy drama The Big Short is seeing a rise in popularity as people attempt to understand what's going on with US company GameStop.The video game retailer's stock skyrocketed by more than 700% in the last week after Reddit users bought shares and exchanged tips online.It led to many investors on Wall Street, who had bet the company's share price would continue to fall in value, to lose large sums of money.

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