The lucrative offer from this expert for the collapse of the housing bubble in 2007 was captured in the movie “The Big Short”.
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This article has been translated from our English edition.
This story originally appeared on Business Insider
Michael Burry, the investor whose stake of $ 1 billion against the American real estate market was immortalized in Michael Lewis’ book and film “The Big Short”predicted that Tesla stock would suffer a similar decline.
“Well, the last post on my Big Short blog just had BIGGER and BIGGER”, Burry tweeted on Thursday.
Tesla’s share price rose 8% on that day alone, adding $ 60 billion to its market cap, equivalent to “1 GM, 2 Hersheys, 3 Etsys, 4 Dominos, 10 Vornados”.
“Enjoy while it takes,” added the founder and head of Scion Asset Management.
Burry announced in December that he was selling Tesla short and asked CEO Elon Musk to capitalize on his electric vehicle maker’s “currently ridiculous price” by issuing shares. “Sell the #TeslaSouffle,” he added.
Tesla’s shares rose about 740% in 2020 and are up 16% this year. This gives the automaker a larger market cap than Facebook and makes Musk the richest man in the world.
Burry was starred by Christian Bale in the film version of “The Big Short “. She has taken the Twitter name “Cassandra”, a reference to the priestess from Greek mythology who was cursed to share true prophecies but never to be believed.
In fact, Burry was looked down almost everywhere when he predicted the housing bubble would burst and began buying credit default swaps for subprime mortgage bonds in May 2005. He endured immense pressure from investors to get their money back.
A wave of mortgage defaults put the real estate market down for good in 2007, and Burry personally raised $ 100 million and made another $ 750 million in profit for his investors.