No. of Recommendations: 0
I am not a paying burry subscriber, but it seems he is not aware that meme sentiment has to break in general to affect tsla.
"...'Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,' Burry, who rose to fame for his call on a housing market bubble in the 2000s, wrote to subscribers of his new paid Substack.
I don't think Burry would disagree that Tesla is a meme stock. He is not saying it will drop right away, he is just saying that it is overvalued. It could get more overvalued if Tesla fans (I am one) drive the price up despite the fundamentals, which would not contradict what Burry is saying.
I think the point he misses is that Tesla is a bet on the future, not on current sales and profits. Of course it is hugely overpriced based on the cars it sells right now or the number of cars it can reasonably sell in the next 2-3 years. The question is, is Tesla at the edge of a transformation to affordable self-driving cars, or not? In other words, will they take over not just a slice of the EV market but also huge chunks of the much bigger markets for taxi service, parcel delivery, public transit, etc.? And what about personal robots? And what about robotics in general, and battery storage, and making their own chips and perhaps selling them to others? Some of these are farther away than others, but betting on Tesla now is a venture capital bet on future products, not a bet on the company's existing products.
Burry pointed out that Tesla dilutes shareholders at a rate of 3.6% each year and doesn’t offer buybacks..."
I like the unintentional irony here: the company is way overpriced, and they don't even offer buybacks!
dtb
