Michael Burry To Tesla Investors: 'Enjoy It While It Lasts'
Michael Burry To Tesla Investors: 'Enjoy It While It Lasts'
New addition to Tesla's short camp: Michael Burry, the prototype of the "big short", calls it "18x Bubble".

Michael Burry, who was depicted by Christian Bale in 2015's "The Big Short," said he was shorting Tesla Inc TSLA 0.64% in December. So far, that bet isn’t going very well to say the least.

But Burry took to Twitter to remind his followers that his big bearish bet against the housing market back in 2007 started off poorly as well.

Burry is a former hedge fund manager who gained notoriety on Wall Street by predicting and profiting from the subprime mortgage crisis.

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Burry’s Bearish Bet: On Dec. 1, Burry tweeted he's shorting Tesla stock. Since that date, the stock is up another 48.3%, but Burry said Thursday he's still convinced the Tesla story will ultimately end poorly.

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. pic.twitter.com/T277d4CByO

— Cassandra (@michaeljburry) January 7, 2021

Burry is sticking to his bearish guns in a week that multiple Wall Street Tesla bears have finally thrown in the towel and upgraded the stock. On Thursday, RBC upgraded Tesla from Underperform to Sector Perform and raised its price target from $339 to $700. On Friday, Evercore ISI upgraded Tesla from Underperform to In Line and initiated a $659 price target.

Tesla shares are now up 513% in eight months since Tesla’s CEO Elon Musk himself tweeted that “Tesla stock price is too high imo” back on May 1 of last year.

Benzinga’s Take: Identifying financial market bubbles is much more difficult than predicting just how inflated they will get and exactly when they will pop.

Economist John Maynard Keynes once described this difficulty in his famous quote: “The market can stay irrational longer than you can stay solvent.”

Tesla's stock trades around $878 at publication time.

Source : www.benzinga.com

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