Michael Burry, who shot to fame for predicting and profiting off of the 2008 subprime mortgage crisis, has revealed a more than half-a-billion-dollar bet against Elon Musk’s Tesla.
Burry’s firm, Scion Asset Management, said Monday in a regulatory filing that it owned puts against 800,100 shares of Tesla as of March 31 with a total value of $534 million. The puts, which are bearish options, give Scion the right to sell Tesla shares at a set price on or before a specified date.
Investors profit from puts when the underlying stock price falls.
The filing with the Securities and Exchange Commission did not reveal the set price of the puts nor their expiration date. The filing also did not reveal when Burry initiated the wager against Tesla nor how much Burry’s firm paid for the puts.
Shares of Tesla fell more than 4 percent Monday after the disclosure, but were up nearly 2 percent in midday trading Tuesday. Shares of the company are down almost 20 percent since Jan. 1.
Tesla shares fell more than 4 percent Monday after Scion Asset Management disclosed their holdings.The Washington Post via Getty Images
Burry was propelled to fame when he and his firm
