Michael Burry of ‘The Big Short’ Reveals Massive Short Bet Against Tesla

Well there’s definitely one person who is against the rise of electric vehicle maker Tesla’s share price, and that’s Michael Burry of “The Big Short.”

Burry is long puts against 800,100 shares of Tesla, or $534 million, by the end of the first quarter. That is according to a filing that was made with the U.S. Securities and Exchange Commission.

Burry is known for being one of the first investors to call and profit from the subprime mortgage crisis. His firm Scion Asset Management had rose to fame by betting against mortgage securities before the 2008 crisis. Burry was depicted in Michael Lewis’ book “The Big Short” and the Oscar-winning movie of the same name.

According to a once made tweet, the investor said that Tesla’s reliance on regulatory credits to generate profits is also an impediment to the company’s long-term prospects.

As of March 31, Burry owned 8,001 put contracts, with unknown value, strike price, or expiry, according to the filing.

In another tweet that has been deleted, Burry noted that Tesla’s reliance on regulatory credits to generate profits is a red flag.

Burry was also recently long on GameStop with its massive short squeeze.

Tesla shares have dropped nearly 20% in 2021 after surging a whopping 740% in 2020. Some believe that CEO Elon Musk’s tweets about bitcoin and dogecoin have contributed to the volatility in Tesla’s stock.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.