Michael Burry Of 'The Big Short' Fame Exits Bearish Tesla, ARK Innovation Bets

Investor Michael Burry of “The Big Short” fame exited his bearish bets on $Tesla(TSLA.US)$ and Cathie Wood’s $ARK Innovation ETF(ARKK.US)$  in the third quarter, according to a regulatory filing on Monday.

What Happened: Burry’s private investment firm Scion Asset Management LLC has reduced its holdings from more than 20 companies previously to just six companies as at the end of September, as per the filing with the Securities and Exchange Commission.

Scion has exited positions in all the other companies it held previously. This includes exiting bearish put options on almost 1.1 million Tesla shares and on 235,500 shares of Ark Innovation ETF.

A put option gives an investor the right to sell a stock at a certain price in the future.

Scion has also exited the call options on 91,900 shares of $Alphabet-C(GOOG.US)$ $Alphabet-A(GOOGL.US)$ and 941,200 $Meta Platforms(FB.US)$ stock as at the end of June.

Further, Burry said in a now deleted tweet that he has never shorted any cryptocurrency, but warned that the current bubble is bigger than the dot-com or housing bubbles. He also hinted he is betting against long-term U.S. Treasuries.

Why It Matters: Burry said in December last year that he was shorting Tesla stock. However, the famed investor said last month that he is no longer betting against Tesla and his position in the electric vehicle maker was only a trade, it was reported, citing CNBC.

Following Burry’s disclosure in August of a $31 million short position in ARK Innovation ETF, Cathie Wood had questioned Burry’s understanding of the innovation space.

Burry’s comments about not shorting cryptocurrencies assume significance since he believes that cryptocurrencies are in a bubble.