The Big Short 2.0

Firefighters work 16 hours to put out fires in Tesla Model S - ABC News

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

— 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.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: