Michael Burry Will Win His Tesla Bet

Whoever said a lightning can’t strike twice, never met Michael Burry. Burry, of course, is well-known for his bets against the housing market before The Great Recession and for investing in GameStop right before all the madness. Now Burry is going after one of the biggest powers of the universe in Tesla.

Burry is longing puts against a half billion dollars worth against Tesla. His reasoning for this move is to due to his skeptical nature surrounding Tesla taking advantage of federal credits. Regardless of Tesla’s business model, this is a move that is bound to reap great rewards. For the last year, Tesla skyrocketed based on nothing. It was solely based on the fact that Elon Musk is entertaining on social media and Reddit users loved trading it. Then it kept going up because people were convinced it couldn’t go down based on zero factual evidence.

If you want a bubble, you got it in Tesla. This is an innovative company with a bright future for the long term, but its recent spike was all hoopla. Once again, Michael Burry will have the last laugh for reasons not as complicated as everyone thinks.