$ 534M Bid Against Tesla
The famous American investor Michael Burry predicted the 2008 mortgage crisis short-circuited Tesla shares by $ 534 million.
Michael Burry is known for being one of the first to predict the collapse of the real estate and mortgage lending market, which caused the financial crisis of 2008. Burry made a bet against the American real estate market, earning $ 700 million for the investors of Scion Capital. for a fall “.
It looks like Dr. Burry is about to create the next Big Short. Yesterday it became known that the investor opened a short position against Tesla for more than $ 534 million through Put options. According to the report submitted to the SEC, Burry held 8,001 Put contracts at the end of the first quarter. The price and terms of their execution were not disclosed.
It isn’t the first time Burry has bet against Tesla. Earlier in a deleted tweet, the investor noted that Tesla’s dependence on regulatory loans for profit is a “red flag.” Regulatory loans, which are not related to loans, are received by Musk’s company from government programs to support renewable energy sources to produce environmentally friendly cars. Other automakers buy these credits to offset the carbon footprint of their products and avoid them.
Earlier this year, Burry compared Tesla’s skyrocketing shares to the US mortgage bubble in 2008. It’s impossible to say exactly when and at what price Michael Burry opened his position.
Tesla shares are down more than 36% from their highs since the beginning of the year. We talked about developing the downward movement in our technical analysis of May 13, indicating the first target of the decline at $ 550-570. At the moment, the price found support there.
The current technical picture suggests that Tesla shares are likely to continue their decline with periodic corrective pullbacks upwards, and Michael Burry will be able to make money by betting against Elon Musk.
If the decline continues, the closest targets will be $ 490-510 and $ 410-450.
