This really isn’t surprising. Their market cap was larger than the whole of the rest of the auto industry combined. Had to come back to earth eventually.
I wanted to short it because it was obviously overvalued but I was absolutely not confident it would come down because I will always believe there are greater fools among the Tesla shareholders.
Something about how the market can stay irrational longer than you can remain solvent…
Michael Burry, who shorted the housing market in 2008 and made big upfront payments for that bet also shorted Tesla in the last couple years, but bailed because it was too risky for him.
This really isn’t surprising. Their market cap was larger than the whole of the rest of the auto industry combined. Had to come back to earth eventually.
I wanted to short it because it was obviously overvalued but I was absolutely not confident it would come down because I will always believe there are greater fools among the Tesla shareholders.
Remember: the market can remain illogical a hell of a lot longer than you can remain solvent.
Something about how the market can stay irrational longer than you can remain solvent…
Michael Burry, who shorted the housing market in 2008 and made big upfront payments for that bet also shorted Tesla in the last couple years, but bailed because it was too risky for him.