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The family office run by Michael Burry is one of the investors introduced in the movie and the movie “Big Short.” The family office revealed that it holds $500 million worth of Tesla Short position in stocks.
The family office run by big short investor Michael Burry revealed a short position, betting on Tesla Inc’s stock worth more than $1 billion.
Scion Asset Management said in a regulatory document on Monday that as of the end of the first quarter, it had put down 800,100 Tesla shares worth $534 million.
Put options give investors the right to sell stocks at a certain price in the future.
As one of the investors described in the book “Big Short” and the movie of the same name betting on the US housing bubble of more than $1 billion, Bury has always been skeptical of Tesla’s sky-high valuation.
In February, he wrote in a tweet: “My last Big Short is bigger, bigger, bigger”, referring to the surge in Tesla’s market value. He said: “Enjoy it for the duration.”
Thanks to strong sales performance and the company’s first annual profit, Tesla’s stock price jumped more than eight times last year and hit a record high of $883 per share in January. But since then, they have fallen because of fears from hedge fund managers that Tesla is overvalued.
The stock closed at US$576 per share on Monday, and the electric car manufacturer’s valuation is approximately US$555 billion.
Burry also said last year that as Fiat Chrysler Automobiles (FCA) increases sales, the green regulatory credit that Tesla relies on to generate profits will decrease.
Stellattis, a merger of Italy’s FCA and France’s PSA, said this month that if it does not purchase environmental credits from Tesla, it is expected to achieve this year’s European carbon dioxide emissions targets.
The scion, which does not hold external capital, also increased its exposure to energy last quarter, adding 530,000 shares of Golden Ocean Group, 323,823 shares of Sunco Energy and 225,000 shares of Occidental Petroleum.
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