Elon Musk and Michael Burry
Source: Getty

‘Big Short’ Investor Michael Burry Taunts Elon Musk Again

Mohit Oberoi, CFA - Author

Nov. 16 2021, Published 8:22 a.m. ET

Michael Burry is among the most followed hedge fund managers. He has been critical of Tesla and its CEO Elon Musk on more than one occasion. He also shorted Tesla stock but has since covered up his positions. What’s Burry’s net worth and how did he make his money?

Article continues below advertisement

Michael Burry

Founder of Scion Asset Management

Net worth: $300 million

Burry’s bet against CDOs is among the most iconic trades in history. It was featured in the best-selling book The Big Short: Inside the Doomsday Machine and the film adaptation The Big Short. He has frequently talked about a bubble in various assets. Burry has targeted Tesla CEO Elon Musk again but deleted his Twitter account after the spar. Burry's net worth is estimated to be $300 million.

Burry rose to fame with his bet against CDOs during the housing boom of 2007 when not many people were willing to do so. The bubble eventually burst and the U.S. housing market crashed, which led to massive gains for Burry’s fund. His bet against CDOs is among the most iconic trades in history.

Article continues below advertisement

Burry versus Elon Musk

Burry hasn’t really been friends with Musk. He has been critical of Tesla’s valuations. In 2020, he mocked Musk about selling more Tesla shares to raise cash. Shortly after, Tesla announced a $5 billion share sale, which was the third for the year. Musk is known to take bears head-on even though the community of Tesla bears has been shrinking after traders raked in billions of dollars of losses betting against Tesla and Musk.

Article continues below advertisement

Did Burry lose money on his Tesla short position?

It isn't certain whether Burry lost money on his Tesla short positions because we don’t know about the expiration date or the strike price. All we know is that he bought puts on Tesla. Puts offer downside protection and the maximum downside is limited to the premium paid. The upside is contingent on the price action of the underlying stock.

Burry targets Musk again

While Burry has covered his short position on Tesla, he hasn’t stopped taunting Musk. Burry has mocked Musk for selling Tesla shares. He thinks that Musk isn't selling shares because he needs funds, but because of the valuation.

Article continues below advertisement

Tesla stock has surged over the last month and despite the recent correction, its market value is near $1 trillion. As Burry has done previously, he deleted his Twitter account after the spar with Musk.

Article continues below advertisement

Michael Burry net worth

According to Celebrity Net Worth, Burry has a net worth of $300 million. Burry made most of his wealth through his investments. He founded Scion Capital in 2000, which he ran until 2008. He made a personal fortune of $100 million through his bet against the CDOs. He founded Scion Asset Management, a fee-only hedge fund, in 2013.

Michael Burry's predictions

Burry has made several predictions in his investing career. At one time, he was bullish on water but has since closed his positions. In 2020, the CME launched the world’s first water futures linked to the California spot water market. In 2019, Burry also predicted that passive investing would lead to the next big stock market crash. Recently, he made a famous bet against Tesla.

Article continues below advertisement

In 2020, Burry predicted that cryptocurrencies are in a bubble. However, Burry said that he isn't short on cryptocurrencies. He warned that the speculative activity in the markets is at the highest level since the 1920s while the market is more overvalued since the dot-com boom days.

Article continues below advertisement

Apart from Burry's bet against the CDOs, most of his recent predictions haven’t been correct, at least so far. Cryptocurrencies have continued to rise while Tesla has added a few hundred billion dollars to its market cap since Burry shorted the stock.

While Burry has many ardent followers, many others see his investment style as too old school. After Burry bet against Cathie Wood’s ARK Innovation ETF, Wood said that Burry doesn't understand the innovation space. Burry has also closed his short position against Wood's fund, Scion's latest 13F revealed.


Latest Net Worth News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.