Michael Burry, the prototype of the protagonist of the movie “Big Short Sale” and famous for shorting the subprime mortgage bubble, issued an “air raid alert” to Tesla on Wednesday (21st), Tesla (TSLA-US) fell 2.57% to $300.80 a share on Wednesday, extending losses for a second straight session.
Foreign media reported Wednesday that PG&E, one of California’s major power companies, caught fire in California’s large energy storage system. The fire was caused by a Tesla Megapack battery pack in the storage system. The fire forced nearby residents to be evacuated and caused roads. Blocked for hours.
“If I’m tweeting, you can bet I won’t be short Tela, but I should (short),” Berry retweeted the news on Wednesday.
Berry’s choice to short mortgage-backed securities prior to the 2008 financial crisis became famous and became a textbook case in the best-selling novel “The Big Short.” Berry has been shorting Tesla since late 2020, arguing that Tesla’s valuation is absurd compared to the rest of the industry.
Berry’s Scion Asset Management held put options on more than 1 million shares last year, but Scion Asset dumped Tesla short positions in the third quarter. Berry said in November last year that he no longer shorted Tesla, but he did not give a specific reason, only that his shorting Tesla was just a transaction, and the media was exaggerating.
Even following giving up on shorting Tesla, Berry has often criticized Musk, scoffing at Musk’s stock sale in November. Berry said Musk doesn’t need the cash and just wants to sell Tesla shares because Musk’s real purpose of selling shares may be to pay off personal loans. Musk said he was selling his Tesla stock for tax purposes and pushed back once morest Berry’s criticism.
It is worth mentioning that Berry has often warned that US stocks are regarding to collapse in recent months. Scion Asset disclosed in August that it has sold all stocks in its portfolio in the second quarter, and its latest 13F position report will be around November 15. announced.
