Tesla’s stock price is detached from the fundamentals, or at least that’s what many analysts believe. Now, there’s real competition in the EV industry. Tesla’s woes in China, where it’s facing consumer backlash, isn’t helping matters either. As competition heats up, we would see an invariable price war. The signs of a price war are already visible in China, which is the world’s largest EV market.
As the EV mania fades, it won’t hurt to bet against TSLA stock and buy put options like Burry did. While the stock could still surge due to Musk’s cult-like following, by buying a put option you can at least limit the downside in case Tesla bulls end up having the upper hand.
View more information: https://marketrealist.com/p/michael-burry-short-tesla-tsla-stock/