Famed investor of “The Big Short” Michael Burry, one of the first investors to profit off of the 2008 mortgage crisis, announced earlier this week that he is filing a short position against Tesla (NASDAQGS:TSLA +0.18%) for more than half of a billion USD.
According to CNBC, Burry has long puts against 800,100 shares of Tesla which translates to approximately $524 million USD by the end of the first quarter of the year. Investors profit from puts, such as the aforementioned, when the underlying securities decline in prices. As of the end of Q1, Burry owned 8,001 put contracts — all of which are of unknown value, expiry or strike price, according to the SEC filing.
Earlier this week, Tesla’s shares fell more than 4 percent, which brings its month-to-date losses to nearly 20 percent.Michael Burry $530 Million USD Bet Against Tesla | HYPEBEAST