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 warning” for Tesla on Wednesday (21st), Tesla (TSLA-US) fell 2.57% on Wednesday to $300.80 a share, extending losses for a second straight session.
Foreign media reported on Wednesday that PG&E, one of California’s main 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 get evacuate them and cause roads. Blocked for hours.
“If I tweet, you can bet I won’t be short Tela, but I should be (short),” Berry retweeted the news on Wednesday.
Berry’s choice to short mortgage-backed securities before 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 options on more than 1 million shares last year, but Scion Asset exited short positions in Tesla in the third quarter. Berry said in November of last year that he was no longer shorting Tesla, but did not give a specific reason, only that his Tesla shorting was just a transaction, and that the media was exaggerating.
Even after stopping shorting Tesla, Berry has often criticized Musk, mocking Musk’s stock sale in November. Berry said Musk doesn’t need the cash and wants to sell Tesla shares because Musk’s real purpose for selling shares may be to pay off personal loans. Musk said he was selling his Tesla stock for tax purposes and pushed back against Berry’s criticism.
It is worth noting that Berry has often warned that US stocks are about to collapse in recent months. Scion Asset revealed in August that it had sold all the stocks in its portfolio in the second quarter, and will its latest 13F position report around November 15 was published.
