"Competition is coming for Tesla Inc. TSLA" just like it came for Netflix Inc. NFLX, "The Big Short" fame's Michael Burry warned in a tweet late Tuesday.
Netflix shares tumbled over 25% in the after-hours session on Tuesday as the company reported its first subscriber-loss since 2011. The streaming video on demand platform reported losing about 200,000 subscribers in the first quarter.
"The competition came for Netflix just like the competition is coming for Tesla," Burry said, sharing a link to heavy metal band Tesla's debut single "Modern Day Cowboy."
The competition came for Netflix just like the competition is coming for Tesla. https://t.co/ZLnfgmdYUU— Cassandra B.C. (@michaeljburry) April 19, 2022
The SVOD space sees intense competition. Walt Disney Co. DIS, Apple Inc. AAPL, and Amazon.com Inc. AMZN all have units that cater to this market alongside services like Hulu, HBO and Peacock.
The electric vehicle space is getting similarly crowded — with participation from both upbeat pure-EV startups and legacy automakers like Ford Motor Company F that are dedicating billions of dollars to transition their gas-powered vehicles to electric variants.
Burry has bet against Tesla in the past but in October said he was no longer shorting the stock of the Elon Musk-led company.
Burry shot to fame for his prediction of the subprime mortgage crisis of 2007-2010 and being able to profit from it.
Tesla shares have fallen 14% this year ending a massive bull run that began with the COVID-19 pandemic.
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