Per MarketWatch, Michael Burry of “The Big Short” fame is back and all-in on a TSLA short.
As of January 11, 2021, Tesla is now trading at about 29x sales.
Burry observed that showed the company’s sale of regulatory credits was necessary for profitability. He also pointed out the company’s flat revenues and Tesla’s “inferior lithium iron phosphate tech” while appending the Tweet with the hashtag #bubbles.
$TSLA: @FT #BigRead – sales of green regulatory credits necessary for “profitability.” Flat revs as tax credits wane/ deliveries stagnate. Inferior lithium iron phosphate tech behind #millionmilebattery means lower energy density/reduced range. #bubbles https://t.co/Z5XlzzEsJj pic.twitter.com/8wH1o6PJrM
— Michael Burry, M.D. (@michaeljburry) September 22, 2020
Even today – even AFTER being ~7% from its peak – TSLA is now at the “bargain-basement” P/E of 1852.