American investor Michael Burry, who predicted the 2008 financial crisis and became the prototype for one of the characters in The Big Short, revealed a short position against Tesla worth more than half a billion dollars.
Burrie’s investment fund Scion Asset Management said Monday that it had options to buy 800,100 Tesla shares at the end of the first quarter for $ 534 million. Such instruments are used by investors to make money in the event of a fall in the value of shares.
Michael Burry is skeptical about Tesla’s sky-high valuation. In February, he tweeted, “My last big short got bigger, much bigger.” He also commented on Tesla’s rise in market capitalization, saying it won’t last long.
Thanks to strong sales and first-year earnings, Tesla shares jumped more than eightfold last year and hit a record high of $ 883 per share in January. But they have since dropped as hedge fund managers fear they are overvalued. On Monday, trading closed at $ 576 a share, with Tesla’s market value at around $ 555 billion.
Berry also said last year that the environmental regulatory credits that Tesla relied on to generate profits will decline as Fiat Chrysler’s sales increase.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
