The family office run by Michael Burry, one of the investors in the book and the film The Big Short, revealed that it had a short position worth more than $ 500 million betting on Tesla shares.
The family office run by investor The Big Short, Michael Burry, has revealed a short position that bets on the shares of Tesla Inc worth more than half a million dollars.
Scion Asset Management said Monday in a regulatory filing that it had low options to buy 800,100 shares in Tesla at the end of the first quarter worth $ 534 million.
The put options give investors the right to sell shares at a certain price in the future.
One of the investors featured in the book The Big Short and the eponymous film to bet more than a billion dollars against the US housing bubble, Burry has been skeptical about Tesla’s valuations.
In February, he tweeted “my last Big Short got bigger and bigger and it was BIG,” referring to Tesla’s rise in market capitalization. “Enjoy it while it lasts,” he said.
Driven by strong sales and the company’s first annual profit, Tesla shares jumped more than eight times last year and hit a record high of $ 883 per share in January. But they have since fallen as hedge fund managers raise concerns that Tesla is overrated.
Shares closed Monday at $ 576 per share, valuing the electric car maker at about $ 555 billion.
Burry also said last year that the green regulatory credits on which Tesla has relied to generate profits will decline as Fiat Chrysler Automobiles (FCA) increases sales.
Stellantis, formed by the merger of the Italian FCA and the French PSA, said this month that it hopes to meet its European carbon dioxide emissions targets this year without environmental credits purchased from Tesla.
Scion, which has no outside capital, also withdrew its energy exposure last quarter, adding 530,000 shares to Golden Ocean Group, 323,823 shares to SunCoke Energy and 225,000 shares to Occidental Petroleum.