'Big Short' investor Michael Burry says Tesla is 'ridiculously overvalued'

[edhopper]

https://www.msn.com/en-us/money/companies/big-short-investor-michael-burry-says-tesla-is-ridiculously-overvalued/ar-AA1Ru8mc

"Tesla's market capitalization is ridiculously overvalued today and has been for a good long time," Burry wrote, adding that he expects Musk's $1 trillion dollar pay package to continue to dilute the company's shares.

"As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up," the legendary investor said.

I have been saying this for a while.

[tinrobot]

1. It's been overvalued for almost a decade.

People have gone broke waiting for the bottom to drop out of that stock.

It will eventually. When the dam finally breaks, it will be catastrophic.

[edhopper]

3. I don't get how investors

think those PE values are sustainable.

I remember in the 00s a housing bubble was obvious early on. It just takes time for something to crack.
For Tesla, as long as fools want to keep throwing money at that stock, it will rise, but once at some point....

[EdmondDantes_]

5. The market can remain irrational longer than most can remain solvent

Unfortunately a lot of people still buy into the great man of history myth in the market so celebrity CEOs can boost their own value through stocks.

[edhopper]

7. Even if we accept certain corporate leaders

for good or ill made their companies great, Edison, Ford, Geneen, Gates...
Elon is not one of those. He bought companies and was more lucky than smart.

[EdmondDantes_]

9. Absolutely, but the public doesn't really acknowledge that

Or how much he benefited from government whether through EV subsidies, selling tax credits, etc. Plus it's easier to make big gambles when you start with a large fortune from apartheid emerald mines. But he's still portrayed as someone special.

[In It to Win It]

4. He's not wrong.

[lame54]

6. Is he ever?

[pcdb]

8. Almost always

He was right once.

https://moneyzine.com/investments/investing/how-many-times-has-michael-burry-been-wrong/

[Johonny]

10. He has said before not to bother shorting Tesla

Because it is a pathological stock.

[fujiyamasan]

11. He may be right

But unless you have a lot of money to burn, short selling stocks is a very difficult game to win. It’s not just about direction of the stock price, it’s also about the timing. That’s why options can be so dangerous. What people forget about the Big Short is that for a while, Burry was losing a lot of money.

There have been a lot of investors that have tried to short Tesla over the years, and they have usually got burned very badly. The same goes with Palantir.

Nvidia is imo different. It’s a monster of a company, has a very wide moat, and has the margins and revenue growth to warrant a high valuation. It may be overvalued at the moment, but there’s difference between a PE in the 40s or 50s (nvidia) that over 200-500 (Palantir being well over 300). The latter two are basically cult stocks.

[edhopper]

12. You are right

I would not short it, because who knows when investors will wake up.
But I will enjoy the collapse.

[fujiyamasan]

13. Same goes with Palantir

I read he bought a lot of puts on it, but I have no idea what strike price or expiration. Pltr is down ~20% from its highs, so if he bought those around then, he’s doing well.

The CEO is an absolute lunatic, and of course one of the founders is Peter Thiel.