Michael Burry revealed that he is shorting Tesla Stock... Should you be worried?

The big short star Michael Burry made a name for himself during the recent housing crisis by shorting the mortgage subprime bond, and now he is shorting Tesla stock.

Dr. Michael Burry was a medical student before he left medicine to pursue a career as a money manager. He became famous for shorting overvalued tech stocks during the internet bubble era and he made a lot of money. 

Shortly after, Dr. Burry started to focus on the mortgage subprime market, he correctly predicted the real estate market bubble in 2007.  He bet against the mortgage subprime bond by shorting the market. Burry did so by buying up all the credit default swaps against the subprime mortgage deals that he could find. 

It took a while before his bet was fruitful but he eventually made a lot of money, he earned $100 million from the bet in personal income.

Now, Michael Burry is back going against the Tesla stock investors clans. A group of many investors who believes that Tesla’s stock will keep going higher regardless of the unreasonable valuation figures that we are seeing.

Telsa market cap is now at $562 billion, even Elon Musk himself warned that the value is too high in his recent email to Tesla employees.

You can read more about Elon Musk’s letter to Tesla staff about tesla stock below. “ Tesla stocks can get crushed if we don’t watch our spending”, Musk wrote to his employees.

Michael Burry revealed via Twitter that he is shorting Tesla stocks, he even asked Elon to issue more stocks.

"So, @elonmusk, yes, I'm short $TSLA, but some free advice for a good guy ... Seriously, issue 25-50% of your shares at the current ridiculous price. That's not dilution," Burry tweeted