Investor of 'The Big Short' Fame Bets Against Tesla
Michael Burry predicted the housing market bubble would burst in the 2000s.
Michael Burry, who gained fame for predicting the housing market collapse of 2008, is betting that Tesla stock will fall.
The investor, who was played by Christian Bale in the film The Big Short, had about $534 million dollars in put options at the end of the first quarter, according to an SEC filing by his firm.
Put options allow investors to sell shares at a certain price and indicate that investors think the stock’s price will go down.
Tesla shares have, in fact, taken a big tumble lately as investors worry CEO Elon Musk may have his fingers in too many pots. Musk has focused on cryptocurrencies like Bitcoin and Dogecoin rather than his electrical vehicle company.
Related: 3 Great Reopening Stocks to Buy Now
He also runs SpaceX and most recently made his hosting debut on Saturday Night Live. Tesla stock has lost 25% in the past month.
Meanwhile, Burry earned $100 million personally and $700 million for his clients with his bet against the housing bubble in the mid-2000s, which also coincided with the crash of the subprime lending market and the demise of many Wall Street firms.
Burry’s firm Scion Asset Management didn’t give a reason for projecting Tesla’s downturn, according to the SEC filing. But the hedge fund is optimistic and bullish about other names, with call options on Facebook, Google parent Alphabet and CVS.
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