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A comment on Michael Burry of ‘The Big Short’ reveals a $530M bet against Tesla.

Re:Michael Burry of ‘The Big Short’ reveals a $530M bet agai... by awb on Monday May 17, 2021 @02:52PM (#27186792)
It sounds like the short thesis is centered around Tesla’s revenue coming in large part from regulatory credits.

If you take out credits and crypto, they look like most other car manufacturers, struggling to make a profit.

> As more automakers produce battery electric vehicles of their own, ostensibly fewer will need to purchase environmental regulatory credits from Tesla, which they have done in order to become compliant with environmental regulations.

> In the fourth quarter of 2020, Tesla’s $270 million in net income was enabled by its sale of $401 million in regulatory credits to other automakers.

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Re:Michael Burry of ‘The Big Short’ reveals a $530M bet agai... by thow-01187 on Monday May 17, 2021 @05:34PM (#27188732)
Except...the traditional automakers are not struggling to make profit. Not even close. VW Group made $10B last year, during a pandemic year. Toyota $19B. FCA, with their public image of "also ran", $7B. BMW made $4.5B just last quarter.

Even minor automakers like Suzuki or Kia still make multiples of Tesla's profit without breaking a sweat

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Re:Michael Burry of ‘The Big Short’ reveals a $530M bet agai... by atatatat on Monday May 17, 2021 @03:01PM (#27186944)
> It sounds like the short thesis is centered around Tesla’s revenue coming in large part from regulatory credits.

Hopefully not (for Burry), because where are those going?

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Re:Michael Burry of ‘The Big Short’ reveals a $530M bet agai... by rubiquity on Monday May 17, 2021 @05:11PM (#27188506)
Tesla sells its regulatory credits to other auto makers. Other auto makers are becoming more environmentally friendly and are weening off buying credits from Tesla.
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Re:Michael Burry of ‘The Big Short’ reveals a $530M bet agai... by kikokikokiko on Monday May 17, 2021 @03:01PM (#27186956)
Tesla ins't "struggling to make a profit". It never made it. Other than artificially imposed government credits, Tesla business is not and have never been sustainable. Maybe someday people will start to see Musk for the carnival barker that he really is.
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