‘Big Short’ hedge fund manager shorts Tesla: Michael Burry makes a £376m bet as he takes aim at Elon Musk
Hedge fund manager Michael Burry has made a £376m bet against Tesla’s stock price
The hedge fund manager who featured in the blockbuster film the Big Short has taken aim at Elon Musk.
Michael Burry, famous for shorting the sub-prime mortgage market before the 2008 crisis, has made a £376million bet against Tesla’s stock price – with ‘put’ options on 800,100 shares in the electric car maker.
This allows an investor to sell shares at a certain price in the future. They become more valuable as a share price decreases.
Burry tweeted in December that his family office, Scion Asset Management, was shorting Tesla, whose shares hit an all-time high of $883.09 in January, but have since fallen 35 per cent.
Burry was played by Christian Bale in the Oscar-winning film The Big Short about the crisis, which also features Brad Pitt and Margot Robbie.
Steve Sosnick, analyst at Interactive Brokers, said: ‘Burry is expressing the type of scepticism that many people have on Tesla.’