However, not every short seller is so susceptible to infection, including Michael burry, the prototype of big short.
On Wednesday, burry tweeted his pessimistic outlook for Tesla and suggested that musk could use the current high share price to raise more cash.
(by doing so) you can consolidate the current performance and the indescribable risk of options. If you have a buyer, sell this Tesla souffle. He continued.
Tesla shares fell 7.4% in early trading on Wednesday, then narrowed their losses to 2.73% in the end.
MichaelBurry is the protagonist of the movie big short. Its Scion Fund (ScionAssetManagement), which earned 750 million dollars for investors in the real estate bubble of 600 million dollars in 2007, became known as the legendary Wall Street legend in the first World War.
Burry tweeted a spreadsheet on Wednesday detailing Teslas financial performance relative to established automakers. The company claims to have the highest market value in the industry, but its total profits and revenues are far lower than those of Toyota, Volkswagen and other big car companies.
Subsequently, copal capital, an asset manager, forwarded burrys tweet and said, we are also shorting Tesla. For now, weve even allowed this short position to exceed our usual position.