In May, Burry’s firm, Scion Asset Management, had placed 800,100 puts on Tesla shares at the end of the first quarter, according to a regulatory filing with the SEC. Details of the put options, including their value and other details, were not available. However, Tesla’s stock closed at $ 667.93 at the end of the first quarter, giving Burry’s stock an estimated value of $ 534 million, but the value of the options position never been disclosed, according to Reuters.
Burry was vocally bearish against Tesla stock. Citing his past expertise in recognizing bubble stocks that were doomed to fall dramatically, Burry believed Tesla was the next company to experience a substantial devaluation. Burry regularly tweeted negative opinions on Tesla shares, only to delete and then deactivate his account shortly thereafter. Burry’s synopsis of Tesla’s shares included claims that the company’s Bitcoin investment was a “distraction from quality issues” and that investors should “take advantage of it while it lasts.”
However, Burry’s analysis of Tesla’s stock was patently flawed. The company saw a 700% increase in its share price in 2020 and continued to climb back to previous levels, but not at an accelerated pace like last year. Tesla stock has climbed more than 11% over the past month, trading at $ 843.03 as the market closed on Friday night.
Burry said in an emailed statement his position was not as tough as the media claimed. “No, it was a profession,” he said. “The media have really inflated the value of these things. I’ve never been short of tens or hundreds of millions of these things through options, as has been reported. Bets on options were extremely skewed, and the media was down in order of magnitude. “
Tesla Bears are quick to draw allegations of fraudulent behavior, a history of broken growth, or an impending collapse in the automaker’s shares. However, arrogance has been the downfall of many brilliant men. Bears who suffered large-scale losses as a result of their bet against Tesla have pulled out of their positions, with some admitting defeat and tilting their hats to Tesla and CEO Elon Musk.
Short-term interest in Tesla stocks has actually fallen quite sharply from previous levels. Tesla has long been one of the most heavily shorted stocks on Wall Street. However, a recent analysis of IHS Markit Ltd. has shown that short sellers are a rare breed. Only 1.1% of available Tesla shares are traded, which is a standard measure of short-term interest. This is an all time high, according to IHS analysis.
Short-term interest had fallen to $ 31.4 million in December, as eleven months earlier, in January 2020, it had peaked at $ 93.6 million.
Disclosure: Joey Klender is a shareholder of TSLA. Not hesitate to contact us with advice! Write to us at [email protected], or you can email me directly at [email protected].