‘Big Short’ Michael Burry is not shorting TSLA but believes he should have

The Big Short, Micheal Burry, touched on Tesla (NASDAQ: TSLA) once again in one of his tweets. Burry is known for predicting and profiting from the mortgage crisis that led to the 2008 crash. 

After a battery megapack caught on fire and caused a well-known Californian highway to close down for a few hours, Burry tweeted on September 21.

“If I am tweeting this, you can bet I am not short it. But I should be. Tesla Megapack battery caught fire at PG&E substation in California.” 

Not the first time he shorted

Scion Asset Management, Burry’s asset management firm, had a short position in Tesla sometime during Q3 of 2021 in the form of put options equating to 1 million shares. 

Furthermore, Scion sold out of all its positions, keeping just one stock in its portfolio. The subsequent SEC filing for the asset management firm should occur on November 15, when more holdings could be revealed. 

Not many new positions should be expected by investors looking to copy or simply follow what Burry is doing in the markets. The main reason could be the constant increase in interest rates, and Burry believes that markets are only half done with the losses. 

TSLA most shorted stock

Meanwhile, Tesla was the most heavily shorted stock since a couple of months ago, with short bets reaching $1 billion against the electric vehicle (EV) producer. However, as markets took another downturn, Tesla lost this infamous crown to another high-flying stock, Apple (NASDAQ: AAPL), now the most shorted stock on the market. 

After donning the mantle of the most shorted stock for 864 days, Apple took over, and Burry has not commented on shorting Apple. 

On the other hand, Burry has commented on the silliness of the markets, warning that investors need to be weary before investing. A wise counsel from a legendary investor on volatile markets and complicated macro environments.    

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