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

You surely place Michael burry as the eccentric investor played by Christian Bale in the film ‘The big court’ (2015). He predicts the mortgage crisis of 2008 and is now so sure declining 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 company 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 an asset at a predetermined price. This allows you to generate profit if that asset falls in the market below the price determined by the option.

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

Image: Michael Burry via Twitter.

Moreover, Burry left traces of his pessimism about Tesla last February.

“My last big bet is getting bigger and bigger. Today alone, Tesla has increased its capitalization by $ 60,000 million, which equates to one GM, two Hersheys, three Etsy, four Domino, 10 Vornado. take advantage as it lasts Burry warned on Twitter this month.

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

“Tweeting and being in the news lately has apparently prompted the United States Securities and Exchange Commission (SEC) to visit us. ”, And he ended the post with the hashtag #nomoretwitts, meaning ‘no more tweets’.

Does Michael Burry’s Tesla Prediction Come True?

In 2020, the Tesla share price He has soared more than eight times, reaching a record $ 883 January 26, 2021. Since then, shares of the electric car company have been declining.

This Wednesday, May 19, Tesla shares trade at $ 563 per unit, which represents one drop of about 36% in their price in less than 4 months.

Image via Yahoo Finance.

Nowadays, Elon Musk’s Company reports a market cap of $ 542.798 million , according to data from Yahoo Finance. Meanwhile, the founding tycoon of EspaceX and Star link ceased to be the second richest person in the world and fell to third place in the Bloomberg Millionaires Index, topped by Bernard Arnault , chairman of LVMH.

by Tesla a bearish streak could be a sign that Burry has once again anticipated the behavior of the stock market and made the right bet again.

Who is and what did Michael Burry do?

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

But it is said that “a troubled river, the fishermen gain”. During the subprime mortgage crisis, the investor personally made about $ 100 million and generated more than $ 700 million in profits for its customers.