Michael Burry predicted the 2008 mortgage crisis and is now betting $534 million on the Tesla crash

You surely place Michael Bury as the eccentric investor played by Christian Bale in the film ‘The big short’ (2015). He predicted the mortgage crisis of 2008 and is now so sure of the fall in Tesla shares that he made a bearish bet against Elon Musk’s company .

A report filed with the Securities and Exchange Commission (SEC) on Monday shows that Scion Asset Management the investment management firm run by Burry, held put options for 800 100 You’re here stocks, value $534 million Last year. March, 31st.

Put Options also known as ‘ put option’ , give their owner the right to sell a good at a predetermined price. This allows you to generate profits in the event that said asset declines in the market below the price determined by the option.


The report does not specify when Michael Bury acquired the options, but in December 2020 he admitted that he bet against Tesla and advised Musk to issue more shares, because in his opinion the price was “ridiculous .”

Image: Michael Burry via Twitter.

Additionally, Burry dropped hints of his pessimism about Tesla last February.

“My last big bet is getting bigger and bigger. Today alone, Tesla increased its capitalization by $60 billion, which equals one GM, two Hersheys, three Etsy, four Dominos, 10 Vornados. enjoy while it lasts ,” Burry warned on Twitter that month.

However, in mid-March, the famous investor decided to delete his Twitter account after being investigated.

“Tweeting and making headlines lately has apparently brought the U.S. Securities and Exchange Commission (SEC) to pay us a visit. and he ended the post with the hashtag #nomoretwitts, meaning “more tweets.”

Does Michael Burry’s Tesla Prediction Come True?

In 2020, the Tesla stock price He soared more than eight times, hitting a all-time high of $883 on January 26, 2021. Since then, shares of the electric car company have been falling.

This Wednesday, May 19, Tesla Stocks are trading at $563 per unit, which represents a down about 36% in their price in less than 4 months.

Image via Yahoo Finance.

Nowadays, Elon Musk’s company brings back a market capitalization of $542.798 million , according to data from Yahoo Finance . Meanwhile, the founding tycoon of SpaceX and Stellar Link ceased to be the second richest person in the world and fell to third place in the Bloomberg Millionaires Index, surpassed by Bernard Arnault Chairman of LVMH.

from Tesla a downward streak could be a sign that Burry has again priced in the behavior of the stock market and again made the right bet.

Who is Michael Burry and what did he do?

Neurologist by profession and founder of the Scion Capital fund, Burry became famous for predicting the bursting of the housing bubble of 2008, which caused a severe financial crisis from 2007 to 2010.

But they do say that ‘a troubled river, the fishermen win’. During the subprime crisis, the investor personally mentioned $100 million and generated more than $700 million profit for its customers.

Copyright 2021 Entrepreneur.com Inc., All Rights Reserved

This article originally appeared on entrepreneur.com