Is The Tesla Stock Price A Mirage? The Man Who Predicted The Big Short Thinks So.

Michael Burry has had a pretty full life. He predicted the housing bubble crash, and if that wasn’t impressive enough, Christian Bale portrayed him in a movie called “The Big Short” that grossed $70 million domestically and $133 million worldwide.

If you saw the film, Burry is essentially a genius, and the foresightedness he showed back in 2007 is making news again now, because Burry sees something developing in the market that he feels is eerily similar to what happened during the dot-com bubble in 1999, and the housing  crisis of 2008.

Burry tweeted a series of interesting observations he’s made.

”In the SF Bay Area, $TSLA vehicles are everywhere,” the investor said in a tweet that has since been deleted.

“Everyone I know owns 1+, though some have gone back to ICE,” (internal combustion engine.)

“I’ve talked to industry players, down to the mechanics,” he continued. “Remarkably similar to 1999 and 2006.”

The stock price for Tesla has essentially hitched itself to a rocket from Musk’s SpaceX company and shot to the moon.  It’s ballooned more than 800% since the beginning of 2020.  Its market cap is at a staggering $780 billion.

All of which reminds Burry of what he saw happen a decade-and-a-half ago.

“My last Big Short got bigger and Bigger and BIGGER too,” he tweeted. “Enjoy it while it lasts.”

Burry is not a fan of the battery technology of Tesla.  On top of ripping the valuation of Tesla, he also points to their relatively small sales numbers and minimal profits as ingredients for what he thinks might happen.

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