Michael Burry had placed bearish puts against 800,100 shares of Tesla as of March 31, Bloomberg reports. The position is estimated to be worth $534 million when the bets were disclosed.
The puts against Tesla gives Burry, through his Scion Asset Management, the right to sell the EV maker shares on or before an undisclosed future date.
Burry, who made millions by betting against mortgage securities at the height of the financial crisis, also advised Musk to dispose of the EV maker shares to generate capital while it was at “ridiculous” levels in December.
The investor also disclosed that he was short on Tesla shares in early December.
Tesla shares have shed a quarter of its value as of the end of March, from a record high of $883.09 reached on January 26.
Tesla’s record Q1 profit came amid chip shortages, yet its shares have shed further 14% after the earnings release.
Tesla stock is currently gaining. TSLA: NASDAQ is up 0.32% on premarket.
