Investor Big Short’s $ 534 Million Bet Against Tesla Shares

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Investor Big Short’s $ 534 Million Bet Against Tesla Shares


Big Short investor Michael Burry’s investment vehicle revealed a $ 534 million bet against Tesla’s share price.

Scion Asset Management, Mr Burry’s family office, has revealed it has “put” options on 800,100 shares of the electric car maker.

A put option allows an investor to sell stocks at a certain price in the future. These options can be traded and become more valuable as a stock’s price declines.

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Tesla’s share price jumped last year but has since fallen

Mr. Burry is one of the investors who was profiled in “The Big Short” and the movie of the same name for betting over $ 1 billion against the US housing bubble.

He is skeptical of the surge in Tesla’s share price.

The company, led by Elon Musk, saw its valuation jump eightfold last year and now eclipse that of other mainstream automakers that produce significantly more vehicles.

In February, Mr Burry tweeted about the latest stock price surge: “Enjoy it while it lasts. “

Tesla shares hit a record high of $ 883 in January, but have since fallen and closed at $ 576 on Monday.

Its value was supported by increased sales and its very first annual profit.

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Tesla’s profits boosted by selling environmental credits to other companies

But much of that profit comes from the sale of regulatory green credits – which Tesla has been able to sell to mainstream automakers to help them meet their emissions targets.

Stellantis – the auto giant resulting from the Fiat Chrysler and Peugeot merger and automaker Vauxhall PSA – said this month it plans to meet its carbon dioxide targets this year without purchasing environmental credits from Tesla.

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