Michael Burry Bets Heavily Against Tesla, Cathie Wood's Ark Funds In Latest Options

“The Big Short” investor Michael Burry may be best known as betting against the housing bubble of the mid-2000s and being rewarded handsomely.

Nowadays, Burry is known for taking on electric vehicle company Tesla Inc TSLA. Burry’s latest bet increases the stakes against Tesla and takes on one of the biggest Tesla bulls.

Betting Against Tesla: Burry was revealed to have 800,000 put options on Tesla shares in May. On Monday, it was revealed that Burry’s Scion Asset management now has 1.1 million put options on Tesla worth around $731 million.

Burry has accused Tesla CEO Elon Musk of overpromising and underdelivering. Burry believes the valuation of Tesla shares is not sustainable and shares could collapse.

Related Link: Michael Burry Places Massive Options Bet Against Tesla

Burry’s New Bet: Also disclosed on Monday was Burry’s 235,500-put option against Ark Innovation ETF ARKK, the popular ETF led by Cathie Wood.

Ark Innovation ETF was a top-performing ETF in 2020, up 149%.

Burry has been vocal against Wood, including a tweet that said Ark Funds promises on disruptive growth that won’t be realized.

“If you know your history, there is a pattern here that can help you. If you don’t you’re doomed to repeat it,” Burry said in since- deleted tweets. He compared Ark to PBHG Growth and the Manhattan Fund.

Tesla is notably the largest holding of ARKK, representing 10.68% of assets as of Monday and Wood has been among the biggest Tesla bulls over the years.

In 2018, Wood famously called for Tesla shares to hit $800 in a move that many thought was unrealistic. Years later, Wood proved the doubters wrong when Tesla hit a split-adjusted $800 price.

Burry may not be the only person betting against Wood and her impressive recent return. Tuttle Capital Management filed to launch a Short Ark ETF with the ticker SARK with the SEC.

TSLA, ARKK Price Action: TSLA shares were down 4.32% at $686.17 at the close Monday. 

ARKK shares were down 2.6% at $116.98. 

See also: How to Invest in Tesla Stock