‘Big Short’ investor Burry says he’s no longer betting against Tesla – CNBC

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Oct 15 (Reuters) – Investor Michael Burry of “The Big Short” fame mentioned he was no longer betting against Tesla Inc (TSLA.O) and that his place was only a commerce, CNBC reported on Friday.

Burry’s Scion Asset Management said in a regulatory filing in mid-May it had put choices on 800,100 Tesla shares as of the top of the primary quarter. Details on the strike worth of the places, their worth and whether or not they have been a part of a broader commerce weren’t out there.

Based on Tesla’s closing worth of $667.93 on the finish of the primary quarter, the worth of that many shares would have been about $534 million. The precise worth of the choices place was not identified.

Put choices give buyers the correct to promote shares at a sure worth sooner or later.

Options analysts mentioned at the moment it was doable the places disclosed within the submitting is likely to be half of a bigger commerce that will curb losses if the put place went against the fund.

“No, it was a trade,” Burry was quoted as saying in an electronic mail to CNBC on Friday, when requested whether or not he was nonetheless shorting 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 informed CNBC.

One of the buyers profiled within the guide “The Big Short” and the movie of the identical title for betting greater than $1 billion against the U.S. housing bubble, Burry has beforehand been skeptical of Tesla’s sky-excessive valuations. learn extra

Tesla and Scion Asset Management didn’t instantly reply to Reuters requests for remark.

Shares in Tesla rose marginally after the bell on Friday.

Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath

The logo of car manufacturer Tesla is seen at a dealership in London, Britain, May 14, 2021. REUTERS/Matthew Childs/Files