Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Tesla skeptic Burry extends short to ARK Invest fund

% of readers think this story is Fact. Add your two cents.


Long-time Tesla skeptic Michael Burry, who is known as “The Big Short,” has extended his short position to Cathie Wood’s ARK Invest Innovation ETF. The fund holds over $112 billion in investments, with Tesla stock making up 10.43% of the fund.

Burry is a longtime investor who previously predicted the 2007 housing crisis collapse. Burry placed bets of over $5 billion on the real estate market in 2007, resulting in billions of dollars of gains after the housing market eventually collapsed.

Since his legendary short position over 12 years ago, Burry has been recently notable for his short positions against Tesla, the electric car company run by CEO Elon Musk. In January, Burry stated that Tesla stock would eventually crumble, stating that Tesla investors should “enjoy it while it lasts.”

Burry then placed a massive 800,000 put option contracts in Q1 against Tesla stock worth $534.4 million. Puts provide investors with gains when underlying securities drop in price. On Monday, Burry’s Scion Asset Management firm placed more puts on Tesla, bringing the total up to 1.1 million. The puts are valued at around $731 million.

Now, Burry is moving his short position to a longtime Tesla bull in ARK Invest, the firm that has remained heavily supportive of Tesla and Elon Musk’s other ventures, including Neuralink. Known for accurate predictions of Tesla’s stock, Wood and ARK gained notoriety several years ago when they predicted that its stock would surge to $800 in 2018. This was impressive as, at the time, Tesla was battling profitability issues and ramping the Model 3, a process that nearly took Tesla bankrupt.

Wood was ultimately proven right last year during Tesla’s monumental 2020 stock surge, which sent the automaker’s stock up over 700% in a year that was extremely tough for many companies. However, after reaching the $800 split-adjusted price that Wood predicted, ARK’s investment narration became more mainstream. Tesla supporters have listened to Wood’s investment strategies due to the outlining success that the firm predicted.

However, Burry is not one of those listeners. After comparing ARK to the Manhattan Fund, he said, “If you know your history, there is a pattern here that can help you. If you don’t you’re doomed to repeat it.” The tweets are now deleted. Burry placed 235,500 put options against ARK’s Innovation ETF fund, which was a top-performing ETC in 2020 after gaining 149% in value.

At the time of writing, Tesla shares were down 3.66%.

Disclosure: Joey Klender is a TSLA Shareholder.

The post Tesla skeptic Burry extends short to ARK Invest fund appeared first on TESLARATI.



Source: https://www.teslarati.com/tesla-skeptic-michael-burry-big-short-ark-invest-fund/


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.