Elon Musk is not selling Tesla shares because he is short of cash; he simply wants to take advantage of the valuation of the automaker, according to Michael Burry on Twitter.
"Let's face it. @elonmusk borrowed against 88.3 million shares, sold all of his mansions, moved to Texas, and is asking @BernieSanders if he should sell more shares. You don't need cash. He just wants to sell TESLA," Burry said.
The investor in the film The Big Bet pointed out last week that Musk has taken personal loans against his shares, and suggested that the CEO of Tesla might be selling shares to pay those debts.
Musk recently pledged to sell 10% of its Tesla shares based on the results of a Twitter survey, and quickly cashed in nearly $ 7 billion (around € 6.1 billion) in shares last week.
Burry's tweet highlights that Musk reduced his tax bill by moving from California to Texas last year, sold most of his $ 100 million real estate portfolio, and assured Senator Bernie Sanders Sunday that he would sell more shares at the legislator's request.
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The investor's opinion is that Musk does not need cash, but wants to benefit from the fact that the Tesla stock price has multiplied almost 12 times since the beginning of last year.
Tesla and Scion have not responded immediately to Business Insider's requests for feedback.
In another tweet, the head of Scion Asset Management highlighted Tesla's stock chart, and the fact that Musk tweeted that the stock price was "too high" when the electric vehicle company's valuation was less than a fifth of its current level. "Just think about it," he said.
It is important to note that Burry stated in December 2020, that he was trading short on Tesla, and that Scion had bearish sell options on the stock in June of this year.
The investor told CNBC last month that he was no longer betting against Musk's company, but that may have changed now, especially since the 15% slump in Tesla's stock price last week was attributed in part to a Business Insider report highlighting Burry's theory of selling Musk shares.
Burry has repeatedly singled out Tesla as the emblem of a huge asset bubble. He called its stock price "ridiculous" in December 2020, predicted earlier this year that stocks would collapse like the mid-2000s real estate market, and suggested that stocks could plummet 90% as did Amazon and other high-flying tech stocks when the dotcom bubble burst.
Cryptos, Bubbles and Bonuses:
Burry has said he knows he should not bet against the rise of cryptocurrencies, and warns that assets are more overvalued today than during dotcom or housing bubbles, and hinted last Sunday in a tweet he has now deleted that he is betting on long-term government bonds.
The investor of the film 'The big Bet' warns that the stock market boom reminds him more and more of the dotcom bubble
"By the way, I have never shorted any cryptocurrency," he said. "This is my third bubble, and the biggest. I've learned a few things in all this time. 30-year treasury bills, for example..."
Burry jokingly asked how to cut short on cryptocurrencies in a tweet in October, and later told CNBC that that asset class is in a bubble.
However, he added that he sees value in the blockchain and non-fungible tokens (NFT), and has even made a small foray into the crypto world by buying some tokens.
The Scion chief's tweet suggests he might have taken a short stand against 30-year treasury bonds, probably because he hopes rising inflation will force the Federal Reserve to raise interest rates, driving bond prices down.
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