Michael Burry of ‘The Big Short' reveals a $530M bet against Tesla

May 17, 2021 at 18:28

Michael Burry attends the "The Big Short" New York premiere at Ziegfeld Theater on November 23, 2015 in New York City.

Famed investor Michael Burry on Monday revealed a short position against Tesla worth more than half a billion, in a regulatory filing.

Burry, one of the first investors to call and profit from the subprime mortgage crisis, is long puts against 800,100 shares of Tesla or $534 million by the end of the first quarter, according to the filing with the U.S. Securities and Exchange Commission.

Investors profit from puts when the underlying securities fall in prices. As of March 31, Burry owned 8,001 put contracts, with unknown value, strike price, or expiry, according to the filing.

Shares of Tesla fell more than 4% on Monday, bringing its month-to-date losses to more than 20%.

Burry, whose firm is Scion Asset Management, shot to fame by betting against mortgage securities before the 2008 crisis. Burry was depicted in Michael Lewis' book "The Big Short" and the subsequent Oscar-winning movie of the same name.

Tesla has had a turbulent 2021 amid slumping sales in China in April, and parts shortages that have impeded production both in the U.S. and China.