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Michael Burry Places Massive Options Bet Against Tesla

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Michael Burry Places Massive Options Bet Against Tesla

Michael Burry, of "Big Short" fame, in a regulatory SEC filing on Monday showed he has placed a massive bet against Tesla Inc (NASDAQ: TSLA).

Who Is He? Burry gained notoriety for shorting the market before the 2007-2008 financial crisis. His firm profited more than $700 million as he predicted the fallout from the devastating effects of systemic subprime mortgage loans.

This saga was documented in Michael Lewis’s "Big Short" book, and then again in a 2015 movie starring Christain Bale as Burry.

See Also: Michael Burry To Tesla Investors: 'Enjoy It While It Lasts'

The Bearish Bet: In a Form 13 SEC filing, it was disclosed that Burry’s firm, Scion Asset Management, placed a huge options bet against Tesla. Scion is holding bearish put options on 800,000 shares of the electric vehicle company.

Burry confirmed back in December he was shorting Tesla, although specifics were scarce.

The total notional value of this trade is worth more than half a billion dollars and could be worth a lot more if Tesla’s stock continues to sink.

Throughout the last month, Tesla’s stock has dropped nearly 20%. In mid-April, the stock was trading around $715. Shares trade around $562 at publication time.

 

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