'Big Short' investor Michael Burry calls Tesla's $1.5 billion bet on Bitcoin a distraction - and says Dogecoin's record price signals a massive bubble
- The "Big Short" investor
Michael Burrysuggested Teslabought Bitcointo distract from regulatory issues in China.
- Burry also pointed to
Dogecoin's record price as evidence of a huge market bubble.
- The Scion Asset Management boss revealed he was short Tesla in December.
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"Chinese regulators summon Tesla on quality issues as consumers complain about quality ... but $TSLA bought $BTC," the Scion Asset Management boss tweeted, using the tickers for Tesla and Bitcoin. "In my mind's eye, so much #digitalconfetti."
In other words, Burry thinks Tesla may have timed its $1.5 billion purchase of Bitcoin to distract from its China troubles.
Burry, whose billion-dollar bet on a US housing-market collapse was chronicled in Michael Lewis' book "
"$TSLA and $BTC correlation coefficient is 0.951967 over the last six months," Burry said. "@elonmusk going for perfect unity? Nah, Elon dreams the impossible. He is determined to break unity. Correlation > 1. And he has history on his side. $TSLA and $BTC investors can make anything happen."
Tesla was not immediately available for comment when contacted by Insider.
Burry, who unknowingly laid the groundwork for GameStop shares to skyrocket as much as 2,500% last month, took aim at Dogecoin in another tweet. The
"A doge's breakfast maybe," Burry said. He linked to a Wall Street Journal story in which Dogecoin's creator said its current price of 8 cents was as absurd and nonsensical as GameStop stock being worth $325 at one point last month.
"We are in a blow-off top in all things," Burry continued, referring to a chart pattern that shows a steep increase in an asset's price and trading volume, followed by a rapid price decline.
Burry hinted in yet another tweet that he expected a market crash in the coming months. He linked to "When The Levee Breaks," a Led Zeppelin song, and said, "This time we'll play it at the beginning, not at the end."
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