Get All Access for $5/mo

Investor of 'The Big Short' Fame Bets Against Tesla Michael Burry predicted the housing market bubble would burst in the 2000s.

By Euni Han

Opinions expressed by Entrepreneur contributors are their own.

Bloomberg | Getty Images

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.

Related: Elon Musk is no longer the second richest person in the world

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.

Related: Do We Dare Predict What 2021 Housing Will Look Like?

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Growing a Business

Why Business Owners Should Streamline Their Operations Now for Success in 2025

As the holiday season and year-end approach, business owners face heightened operational demands, from inventory management to spend control. By streamlining these processes and partnering with flexible suppliers, businesses can maintain efficiency, meet customer needs and focus on growth while navigating this busy period.