Michael Burry is short Tesla Stock and believes they could drop below $100 this year!

The man that bet against America's housing system in 2007 and WON thinks there are some serious red flags with Tesla's current valuation and market cap, which has inflated Tesla's stock price 'ridiculously' higher than it should be.

In December 2020, Burry decided to short Tesla stock, tweeting some "advice for a good guy", saying that he believes Elon Musk should sell off 25-50% of his shares to any potential buyers, which he states is "not dilution".

Burry didn't do this on a whim, in fact, he compiled a spreadsheet that he also tweeted that showed Tesla's revenue, market cap and EBIT compared to 32 large auto manufacturers COMBINED, and the results were staggering.

Now, I don't believe that Burry has an ill will towards Elon at Tesla and doesn't doubt their long term prospects - rather he is concerned that their current sales, revenues, market cap and importantly, their profits does not justify their current valuation and 'ridiculous' share price.

Ultimately, the question becomes, does Cathie Wood of Ark Invest's track record with Tesla predictions give you enough confidence in their prospects. Or does Michael Burry's track record of ground breaking, short position calls concern you more.

Both Burry and Wood have had an impeccable record in their investing careers and area constantly breaking ground. But in this instance, only one of them can be right. So who do you think it will be? Tesla to $1,400 or $100?

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice.
I am not a financial adviser and you should seek independent, licensed, financial advice to make sure the actions you plan to take suit your individual circumstances.
I am not responsible for the financial decisions that you make, only you are