Famed “Big Short” investor Michael Burry said Tesla’s rivals will eventually gain ground on the electric vehicle (EV) company, just like Netflix (NASDAQ:NFLX) continues to face increasing competition from other streaming service providers.
"The competition came for Netflix just like the competition is coming for Tesla (NASDAQ:TSLA)," Burry wrote in a tweet that he later deleted.
The tweet referred to Netflix’s Q1 earnings report which indicated a significant revenue growth slowdown and showed a decline in the company’s number of global paid subscribers for the first time in more than 10 years.
During the streaming company’s earnings call, co-CEO Sarandos warned Netflix is feeling the heat from strong competition.
Shares of Netflix plummeted nearly 40% on Wednesday in response to the Q1 earnings report and provided an outlook that calls for fewer subscribers.
Burry became famous after he anticipated the collapse of the housing bubble in the mid-2000s and made a massive bet against it, making an individual profit of around $100 million and an additional $700 million for his other investors.
The founder of the hedge fund Scion Capital has been betting against Tesla’s stock and mocking the carmaker’s large valuation.
He criticized Musk last year for offloading Tesla shares to avoid paying taxes and rather take advantage of an inflated share price to settle personal debts.
By Senad Karaahmetovic