Michael Burry JUST Bet $500 Million Against TSLA [40% of His Portfolio]
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I have a long position in TSLA
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
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I have a long position in TSLA
DISCLAIMER: All of Tom's trades, strategies, and news coverage are based on his own opinions alone and are only done for entertainment purposes. If you are watching To'ms videos, please Don't take any of this content as guidance for buying or selling any type of investment or security. Tom Nash is not a financial advisor and anything said on this YouTube channel should not be seen as financial advice. Tom is merely sharing his own personal opinion. Your own results in the stock market or with any type of investment may not be typical and may vary from person to person. Please keep in mind that there are a lot of risks associated with investing in the stock market so do your own research and due diligence before making any investment decisions.
So you probably heard - and if you didn't that's a good opportunity to learn about it, that michael berry, the guy from the big short and just insanely smart, he just put up 500 million against tesla. Now i want to give you some context about. What's really going on here beyond the fud from both sides? Of course, you're going to have the tesla haters saying well, michael berry is betting, a good cessna that means tesla's garbage and on the other side, you're going to have all the tesla crowd. Basically saying well michael berry's, public enemy number one.
Neither side will be right, because i'm going to tell you exactly what's going on here, because you know this channel, i like to give you the real story, not the populistic crap from both sides, not what sells newspapers, but rather what actually is the facts? So here's the story, michael berry, runs a firm called scion asset management. Now, in that firm, he has to file form 13f. Now he just filed yesterday, or rather tonight, the 13 f for sign asset management, which tells us what he did in the first quarter of this year, which is already over now. In that form, we saw that zion put up 500 million, which is 40 of the entire fund.
On a put against tesla, i put is a distant cousin, i guess over short, because the put option actually obligates somebody to buy tesla stock from you at a certain price rather than a call option which gives you the opportunity to buy. So. Essentially, a put option is something you purchase when you're betting against the company. It's very similar to shorting a company, however, and here's the stick here, because tesla shorts lost 40 billion dollars in 2020, they got shellacked and also we know for a fact that michael berry is a very smart dude.
So what the hell is going on here, why is michael berry, betting against tesla? Well, he is not betting against tesla, not really. He is the kind of guy who knows how to read the market. The macroeconomics! That's how he made his money. Now, let's eliminate all the fud and emotions out of it check this out, he made a bet in the first quarter when the tesla shares were at 900 dollars that inflation fears will hammer future tech stocks down and will help current cash flow positive cash flows.
So he also bought call options on facebook and google, which are currently cash flow, positive, mature companies. He bought a put on a future profit company because he was betting, that inflation fears will actually cause people to sell off tech, which is exactly what's been going on. In the past few months, you've been seeing people sell future technological stocks like crazy and you've seen facebook and google do well because they're currently cash flow positive, so it's kind of a macroeconomic effect. It has nothing to do with tesla.
Now the thing is michael berry. Probably made some money of this. Put, i don't know for a fact, because i haven't seen the numbers, but he put up this put when the price was 900, it's under 600 right now, so i'm guessing. He made a few shekels, but that does not necessarily mean that he was betting against tesla in the long run, because that would not be that smart and i don't think that's what he's doing now. In the short term, yes, inflation fears are driving, tesla price down and for swing traders and day traders not so pleasant. However, it is completely meaningless in the long term. Tesla will definitely be. One of the biggest companies in the world is going to dominate this year.
With about a million vehicles mark my words and they're going to drive into energy and we've been talking about the bulkies, we don't have to repeat the pool case right here. I don't know if it's going to hit three thousand dollars like ark is saying i mean that's a little bit aggressive, but i think it's easily a traditional company, which means the share price, should be around fifteen hundred dollars by the end of next year. Now i'm patient and i'm gon na wait. I think most investors would tesla have that patience and have that long horizon.
So whenever you hear people from both sides saying well michael berry is public enemy or michael berry is stupid or michael berry thinks that tesla's trash, neither is true, michael berry, made a bet on a certain trend in the market, and he was once again right. That has nothing to do with tesla. Now i hope you enjoyed this video shout out to the channel members shout out to the patriots i'm going to see you tomorrow after i get some sleep have a good night.
Tom, after the end of the video, I saw the commercial of the Tesler program you talked about :))
You honestly think a guy as sophisticated as Bury is using Tesla as a proxy for future cash flows? You don’t think he could be just a BIT more precise? I like your videos but this is bordering on intellectual dishonesty. He doesn’t like the stock. It’s not a proxy. Both you and I know there are much more precise ways of doing this, and if that was his intention he’d be doing it.
The fact that he did the put in the first quarter would mean that if he got the put at the $800-$900 share price range then this would work since at the time the puts would be worth way less than what they are now since Tesla is trading at about $575ish.
Love your channel for being neutral on the news but still bullish on tesla
How corrupt is this country gonna get? Not betting against a company? Why is my stock tanking?
Should Michael Berry considered to be a criminal and be placed behind bars, for damaging companies, the Stock Market and the economy, just for personal gain?
Burry does not think Tesla short-term he's thinking long-term he says it'll go below 100 within the year
Even if somehow they become the best company in the world in a few years, and worth 1500 a share, double your money, there are so many better opportunities to do the same thing.
Burry opened his put options in November when Tesla was around the price it is now
because the last f—king thing anyone needs in a global depression and war is a plastic electric car!
Stating that he bet $500 million against Tesla is factually incorrect, i.e. false statement! He owns 8001 PUT contracts, which multiplied with current market value of corresponding SHARES (not contract values!) would mount to $534 million. But that is NOT the value he paid for the PUTs. Those PUTs maybe worth today somewhere around $50million, i.e. 1/10 the value claimed, but at the time he bought them (with TSLA being much higher) they probably cost much less, somewhere around $10 million. So the real fact is: he bet about $10 million, if he sells those now, he could make a nice profit on them, if he waits more he might make more (if TSLA continues to go down) but it could also turn around and he could lose money on them. The amount of $534million would ONLY come into play if TSLA would suddenly go to $0 before his PUT expires, then he would get that much out of them. Chance of that is pretty close to 0%.
A first quarter put . Probably sold after a 22% profit .
So you have resorted to click bait! Your heading is total BS. You don't know what he paid & he most certainly did not bet $500,000,000.
Man sometimes you sound like you know what you are talking about and other times you sound like you were born yesterday. Your explanation is absolutely not true. Burry is in fact betting against Tesla the company and not just because of inflation. His price target is below 200 per share. He has made it clear from the beginning that Tesla is extremely overvalued. He talked about accounting issues, he talked about regulatory credits. He even at one point compared Tesla to Enron. Please don't spread misinformation. I hope you reply to me this time and not just ignore my comments.
I have been searching for a good broker to trade with!
Please sir how can I find one??
the position isnt 500 million dollars big, no one knows that, he owns x contracts which cover x shares which would be worth 500 million, but the contracts arent worth that much, or it might be more no one knows
Thank you Tom for putting context to this! all the FUD you read is BURRY BETS AGAINST TESLA! total FUD!! Tesla and ETH to the moon!!!!!!!
Michael Burry hit a game winning homerun 13 YEARS ago, and he's been milking it ever since, lmfao!!!!!!!!!!!!!!!!!!!!!1 What a one hit wonder. He's like Jim Chanos, they make a lot of money once a decade then they milk that fame for another 10 years, smfh. This guy Burry is easily the most overrated analyst/investor/fund manager in the world.
bidens trying get ev credit of 7500$ couple weeks will hit 725
Remember that one day where the share prices popped 20% in one day last quarter? A massive buy order or satisfaction of a put may have been executed and triggered an escalation up. Allegedly… blah blah blah… could be possible… could be ramblings….
This is the only channel i use for Stock info. You're invaluable Tom!
Nice video! i was able to build a big income stream during the COVID-19 pandemic investing with a professional broker Mrs Lauranetta.
1) Just bet – wrong, the position has been open for over half a year
2) Bet 500M – wrong, his position value is 500M, he could have bet 10-30M at the right time
I haven't watched the video just got annoyed by the clickbait
can we talk about that MASSIVE TLT short position too??? if inflation is even slightly less than expected, this portfolio will get shellacked
TIL that most investors don't know the difference between going Long Puts and shorting a stock… shocking
Tesla will stop making cars and space ships till he can get material mined or obtained with 100% clean energy 🤣 he can't keep building the future at a greater cost to the environment 🤔
Great video .. I made a few investments in individual companies, in my honest opinion right now i feel it's. safe to invest in an ETF that tracks the S&P500 and ride it out asides that I put $140k into some growth stocks with a investment advisor/broker handling my portfolio… some of my picks are, NVR, LISP.SW, SEB ,DOWJ, AAPL, NYSE, NASDAQ, TSLA, as well as ARKW I've gotten 128% return so far this year, but hopefully I’ll reach a million sooner
… fingers crossed 😄
polestar is coming out soon. Tesla is not going to sell more and more cars. The VW, VOLVO, MERCEDES, GM, FORD, ETC… all are coming out and Brand loyal buyers will not buy TELSA
sure it has to do with tesla. Why would he not do this to SONY? Tesla is fucked
Burry seems to have a good record on calling some major market turns. Putting so much into TSLA puts was a bold move that paid off, I wonder how long he will hold those though?
Tom I think people doing math wrong take look of Rob maur video that entire portfolio he has on that fund is 166k that means he only bet 50k and change if the Tesla did fall in the number he wants he would 535k so I think people are making this whole math incorrectly
I think this was back in February/March so he already made a tone of money
Tom sacrificed sleep for us to get this news! i think thats worthy of a sucscription 😉
How can you say It was a short term bet if you don't even know the expiration date of these contracts neither the strike price? You need to clarify this with your viewrs, some have 0 financial education. I personally think this is a LEAP play by Burry, especially knowing his trading/investment style, he would never play macro in the short-term, much less 33% of his portfolio.
This video is simply trying to protect Tesla and make it sound like Burry doesn’t actually find Teslas current price problematic. Of course he was betting against high growth because of inflation, but saying that Tesla just so happened to be the stock he picked is wrong imo. I, and many others (including Burry) believe Tesla is massively overvalued. Before you come at me: I am a huge fan of the company and have a Tesla myself. Nonetheless, nothing justifies its current valuation and I think Burry is betting on a long overdue correction here.