Tesla will face stiffer competition, says 'Big Short' investor Michael Burry, citing Netflix's rivals reducing its growth last quarter

Michael Burry issued a warning stating stocks in the US are massively overvalued, and their value could plunge. Burry has warned about a historic stock market bubble and forecasted a massive fall. Michael Burry tweeted about the tremendously valued US stocks.

Michael Burry, an American investor and "The Big Short" fame investor, warned that Tesla's opponent would catch up with the electric-vehicle maker, similar to Netflix's competitors already stifling the video-streaming service's expansion. He tweeted about the same on Tuesday.

He was alluding to the first-quarter earnings of Netflix that revealed that revenue growth had slowed to 10% and that the company's global paid subscriber base had decreased for the first time in over a decade. As a consequence of this news, Netflix's stocks dropped as much as 26% in premarket trade on Wednesday.


While referring to first-quarter earnings, Ted Sarandos, co-CEO of Netflix, acknowledged that their business levels are heightened these days, and the reason behind this is the newly launched Disney Plus, HBO Max, and other streaming services in recent years.

Burry warned about a historic stock market bubble and forecasted a massive fall

Presumably, through his tweet, Burry attempted to demonstrate that the index is dealing at almost twice the revenue of its constituents, implying that the valuation multiples on the most prominent public organizations of the US had attained unsustainable levels.

Burry, who owns Scion Asset Management, gained fame after accurately predicting and benefiting from the mid-2000s housing bust. In the summer of 2019, he invested in GameStop and pushed for adjustments at the video-games firm, paving the groundwork for the stock to rise in January 2021, triggering the meme-stock craze.

Scion's CEO has also mocked Tesla's exorbitant valuation and bet against the company's stock. Moreover, he blamed Musk for selling Tesla stocks the previous year not to pay higher taxes but to pay off personal obligations by taking full advantage of an elevated share price.

Additionally, in June 2021, Burry predicted meme stocks, electric-vehicle enterprises, and bitcoin, warning that the pricing is reaching new heights, which will lead to a rapid and disastrous drop in the future.