Burry’s firm Scion Asset Management revealed in a Securities and Exchange Commission filing Monday that it has bearish puts on more than 800,000 Tesla ( shares, worth about $ 534 million, at the end of the first quarter. )
Put options give investors the right to sell a stock at a specified price and are a sign that an investor thinks the stock will go down.
No reason was given on the record as to why Burry believes Tesla’s stock should drop.
But Tesla’s shares recently took a hit, plunging nearly 25% last month – in part because of concerns over CEO Elon Musk focusing more on bitcoin, dogecoin and other cryptocurrencies in the location of the company’s main electric vehicle market.
Burry gambled against the real estate bubble in the mid-2000s and took advantage of the eventual demise of the subprime loan market and many large financial companies in 2008. His premonitory predictions were detailed in Michael Lewis’s book and the film that followed, in which Burry was played by Oscar winner Christian Bale.
But Burry isn’t just looking to profit from stocks he says are ripe for a downfall. According to the SEC filing, Scion also holds call options, which give an investor the right to buy a stock at a certain price, on the owner of Google. Alphabet (, )CVS ( and )Facebook (. )