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Tesla price decline should herald the end of an era
For Tesla shares, 2020 was the most successful year since going public in 2010. For example, the shares of the electric car manufacturer became more expensive under the leadership of Elon Musk last year a total of 743 percent. This year, too, the paper has so far increased 1.25 percent to US $ 714.50 (closing price on February 22, 2021). According to hedge fund manager Michael Burry, the upward trend in Tesla shares could come to an abrupt end this year. On his Twitter profile, the investor recently stated with full conviction that the financial system was not threatened by Tesla shares falling below $ 100 later in the year, according to Business Insider reports. “But it would herald the end of an era for a certain type of investing,” the portal quoted Burry as saying. In doing so, he renewed his criticism of speculative stock deals by small investors. In January, for example, he complained that Reddit users started a run on shares in GameStop and AMC. “It should have legal and regulatory consequences,” Burry wrote on the short message service, according to Business Insider. “It’s unnatural, crazy, and dangerous.” Shortly afterwards, however, he deleted his tweet.
Bitcoin investment as a red herring?
The investor also condemned the report by the electric car pioneer that he had bought Bitcoin worth 1.5 billion US dollars and accused Musk of trying to distract from Tesla’s weaknesses in the Chinese market. “Chinese regulators called Tesla because of quality problems, as consumers complain about the quality … but Tesla bought Bitcoin,” the financial portal quoted Burry’s Twitter statements. Furthermore, he described the announcement as “digital confetti” and thus assumed that the company was using a diversionary maneuver.
The Scion Capital founder achieved notoriety in 2007 for his short bet against the US real estate market, before the price bubble actually burst shortly afterwards and led to the global financial crisis, which culminated in the bankruptcy of the major US bank Lehman Brothers.
The Big Short” is about, which was filmed in 2015 with Christian Bale in the role of Burrys.
Corona criticism drew Burry on Twitter – Trump banning drove him out
The fact that investors let their thoughts run free on Twitter is a relatively recent development. So he only registered on the short message platform in April 2020. “Last week I became active on Twitter for the first time,” he told BNN Bloomberg at the time. “I just had a lot to say and to talk about.”
The Corona crisis and the measures to contain the virus have resulted in an increased need for Burry to notify. “I went to Twitter because I was deeply saddened by a national foreclosure that is devastating the livelihoods of Americans in many ways,” Burry is further quoted as saying. “I saw the prevailing narratives ignoring the masses who are not in mortal danger from COVID-19.” He criticized the fact that the restrictions applied to all citizens, although he said that COVID-19 was especially dangerous for members of risk groups. After the profile of the former US President Donald Trump At the beginning of January, after the storm on the US Capitol was permanently blocked, Burry temporarily said goodbye to the platform, as reported by “cash”. According to Business Insider, he expressed his most recent Tesla criticism again via his Twitter profile, but it is currently no longer accessible.
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