Investor of 'The Big Short' Fame Bets Against Tesla

Michael Burry predicted the housing market bubble would burst in the 2000s.

By Euni Han • May 20, 2021

Bloomberg | Getty Images

Opinions expressed by Entrepreneur contributors are their own.

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?

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

Frontier Airlines Just Announced Its All-You-Can-Fly Summer Pass for $399. What's the Catch?

As travel begins to pick up, the airline hopes unlimited travel will jumpstart its business.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Starting a Business

Free Event | February 9: Solopreneur Office Hours with Terry Rice

Running a one person business is challenging, but we're here to help you. Tune in as our expert, Terry Rice, answers your most pressing questions.

Business News

Mark Cuban's Grocery Store Hack Will Help You Score Cheaper Produce

The billionaire talked about his early days in Dallas when he was strapped for cash.

Leadership

Here's Why You Should Steal Someone Else's Leadership Style

To become the best leader you can be, you must start by being a version of the leaders you most admire.