Well-known investor Michael Burry on Monday revealed in a regulatory statement a short position against Tesla worth more than half a billion.
Burry, one of the first investors to take advantage of the mortgage crisis, has long put options against 800,100 shares of Tesla shares or $ 534 million by the end of the first quarter, according to a statement from the US Securities and Exchange Commission.
Investors benefit from puts when the prices of the underlying securities fall. As of March 31, Burry had 8,001 put contracts with an unknown strike price or expiration date, according to the declaration.
Earlier, Burry mentioned in a tweet that he later deleted that Tesla’s reliance on regulatory loans to generate profits was a red flag.
As more and more car manufacturers produce their own battery-powered electric vehicles, they will seemingly have less to buy environmental regulatory credits from Tesla, which they have done to comply with environmental regulations.
Tesla is currently delaying the production and delivery of its updated versions of its high-end sedan and SUV, the S and X models. And is delaying the commercial production of its specially designed 4680 battery cells for use in upcoming vehicles, including Cybertruck and Tesla Semi.
Musk’s electric vehicle company, meanwhile, has been subject to regulatory scrutiny in China and the United States with high-profile crashes leading to negative publicity and investigations by vehicle safety authorities in both nations.
Many believe that Musk’s tweets about Bitcoin and Dogecoin have also contributed to the instability of Tesla’s shares.
Musk, a proponent of cryptocurrency in general, announced last week that Tesla was indefinitely suspending BTC as a payment for cars, saying it was concerned about “the rapidly growing use of fossil fuels for bitcoin mining and transactions.”
Junior Trader Mert Mustafa