The infamous ‘The Big Short’ investor, Michael Burry, announced he is no longer betting against Tesla.
This change in position comes from Burry’s Scion Asset Management. Back in mid-May, filing revealed the company had put options on 800,100 shares at the end of the first quarter.
However, details on the strike price of the puts, value or part of a broader trade were not made available.
The actual value of the options position is not known. However, the value of that many shares would be almost $534 million based on Tesla’s closing price at the end of the first quarter.
Burry confirmed in an email to CNBC that it was just a trade, and the media was off by orders of magnitude in the actual amount of money he bet against Tesla.
“Media really inflated the value of these things. I was never short tens or hundreds of millions of any of these things through options, as was reported. The options bets were extremely asymmetric, and the media was off by orders of magnitude,” Burry told CNBC.
Burry has long been skeptical of Tesla’s extremely high valuation. Thanks to his foresight to bet more than $1 billion against the U.S. housing bubble in the mid to late 2000’s, many saw his bet against Tesla as a sign the automaker was in a similar position.