Bloomberg TV
- The Big Short investor Michael Burry suggested that Tesla bought bitcoin to distract itself from regulatory issues in China.
- Burry also pointed to Dogecoin’s record price as evidence of a huge market bubble.
- The head of Scion Asset Management revealed that it was sold at Tesla in December.
- Visit the Business Insider home page for more stories.
Michael Burry questioned Tesla’s bitcoin investment and sounded the alarm about Dogecoin’s record price in a series of deleted tweets on Monday.
“Chinese regulators call Tesla on quality issues while consumers complain about quality … but $ TSLA bought $ BTC,” tweeted the head of Scion Asset Management, using tickers for Tesla and Bitcoin. “In my head, so much #digitalconfetti.”
In other words, Burry thinks Tesla may have scheduled its $ 1.5 billion bitcoin purchase to distract from its problems in China.
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Burry, whose billion-dollar bet on the collapse of the US housing market was narrated in Michael Lewis’s book “The Big Short,” revealed that he sold Tesla in December. He scoffed at Tesla CEO Elon Musk and the fact that his company’s stock price changed along with bitcoin in another tweet on Monday.
“The $ TSLA and $ BTC correlation coefficient is 0.951967 for the past six months,” said Burry. “@elonmusk looking for the perfect unit? Nah, Elon dreams of the impossible. He’s determined to break the unit. Correlation> 1. And he has the story on his side. Investors in $ TSLA and $ BTC can make anything happen . “
Tesla was not immediately available for comment when contacted by Insider.
Burry, who unknowingly laid the groundwork for GameStop’s stock to soar by up to 2,500% last month, targeted Dogecoin in another tweet. The cryptocurrency, which was created as a joke, shot to a record high this week after Musk tweeted about it. He now commands a market capitalization of $ 10 billion.
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“A Doge’s breakfast, maybe,” said Burry. He linked it to a story in the Wall Street Journal in which the creator of Dogecoin said its current price of 8 cents was as absurd and meaningless as GameStop’s shares worth $ 325 at any given time last month.
“We are at a high point in all things,” continued Burry, referring to a chart pattern that shows a sharp rise in the price of an asset and turnover, followed by a rapid decline in price.
“The markets have now bubbled up in a dangerous way,” he said in a previous tweet.
Burry hinted in another tweet that he expects a market crash in the coming months. He linked to “When The Levee Breaks”, a Led Zeppelin song, and said, “This time, we will play at the beginning, not the end.”