Investor is Michael Burry known for his bet against the US housing bubble from the mid-2000s which inspired the book and movie “The Big Short.”
His firm Scion Asset Management owns shares in Porsche, which owns part of Volkswagen, which owns Porsche.
This story is interesting because Michael Burry, a famed US investor, is betting that Volkswagen will beat out the current world champion Tesla, in electric vehicles. The latter essentially created the game and has owned it for nearly a decade. Despite these advantages, Burry thinks Volkswagen will walk away with the championship belt.
Burry predicted in early January of this year that Tesla stock will collapse before long. Tesla’s stock blew up by about 740% in 2020 and is still shooting for the stars in 2021. According to Burry, this won’t last: “Enjoy it while it lasts,” the Scion Asset Management founder and boss added.
As reported by Business Insider, Burry has shorted Tesla and is betting on Volkswagen to have the final word when it comes to electric vehicles. Over the last few days, he posted a number of comments on Twitter including:
“Investors, partly due to the #ESGFog, underestimate the size, scale, brands, staying power, and resources of Volkswagen,” This was in relation to a Bloomberg story that the new Volkswagen ID.3 measures up favorably to Tesla vehicles.
Burry completed with: “Ever wonder who owns Bentley, Bugatti, Lamborghini, Porsche, Ducati, etc? VW,” Burry said in another tweet. “Although, Porsche owns VW too. Interested why VW and Porsche do not trade in the US? Because what US investors think is not too important to VW or Porsche.”