Renowned investor Michael Burry, who famously made accurate bets against the housing market during the 2008 financial crisis, has announced that he is shorting shares of electric – vehicle manufacturer Tesla, according to a post on the Substack platform reported by Fortune magazine.<\/p>\n\n\n\n
Burry expressed his view that Tesla’s stock is “ridiculously overvalued.” Despite the fact that Tesla’s share price has already climbed 6.5% this year, its price – to – earnings ratio based on expected profits over the next 12 months is close to 200 times. This extremely high valuation has raised concerns among some investors, including Burry.<\/p>\n\n\n\n
A high P\/E ratio often indicates that a stock is trading at a premium compared to its earnings potential, suggesting that the market has high expectations for the company’s future growth. However, Burry seems to believe that these expectations are overly optimistic and not in line with the company’s actual performance and prospects.<\/p>\n\n\n\n
On Monday, Tesla’s stock closed nearly flat, and there was little movement in after – hours trading. This relatively stable performance in the short term does not necessarily reflect the long – term implications of Burry’s short position. As one of the most closely watched investors in the financial world, Burry’s move has attracted significant attention and could potentially influence market sentiment towards Tesla’s stock in the coming days and weeks. Investors will be closely monitoring how this situation unfolds and whether Burry’s bearish stance on Tesla will prove to be accurate once again.<\/p>\n","protected":false},"excerpt":{"rendered":"
Renowned investor Michael Burr…<\/p>\n","protected":false},"author":2,"featured_media":852,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,3],"tags":[225,68,173],"class_list":["post-851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-companies","category-investment","tag-position","tag-stock","tag-tesla"],"_links":{"self":[{"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/posts\/851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/comments?post=851"}],"version-history":[{"count":1,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/posts\/851\/revisions"}],"predecessor-version":[{"id":853,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/posts\/851\/revisions\/853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/media\/852"}],"wp:attachment":[{"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/media?parent=851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/categories?post=851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chain258.com\/index.php\/wp-json\/wp\/v2\/tags?post=851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}