Not World Hunger Or Tax Bill But This Is The Real Reason Why Elon Musk Wants To Sell Tesla Stock, As Per 'The Big Short' Fame's Michael Burry

“The Big Short” investor Michael Burry has suggested that Tesla Inc. TSLA CEO and the world’s richest person Elon Musk might be looking to sell some of his holdings in the electric vehicle maker to cover his personal debts, Business Insider reported.

What Happened: Burry, who rejoined Twitter this week, noted that Musk had 88.3 million shares pledged as loan collateral, as per the report.

Burry also reportedly posted a link to a regulatory filing in August that showed Musk had pledged about 88 million shares, or 36% of his total stake in Tesla, as collateral for personal loans as of June 30.

The tweet - which does not currently appear on Burry’s Twitter feed - implied that Musk’s sudden interest in a stock sale was to service the loans he has taken using his Tesla stock, rather than to help solve world hunger or because he faces a huge $15 billion tax bill.

Why It Matters: Tesla’s stock fell for the second straight day on Tuesday following Musk’s Twitter poll over the weekend, asking his followers whether he should sell 10% of his shares in the company. The Twitter poll was apparently prompted by a billionaires tax proposed by Oregon Senator Ron Wyden.

It was reported that Musk lost a record $50 billion this week following the plunge in Tesla’s shares, citing Bloomberg.

Burry is a former hedge fund manager who gained notoriety on Wall Street by predicting and profiting from the subprime mortgage crisis. He was depicted by Christian Bale in “The Big Short” movie in 2015.

Burry said in December last year that he was shorting Tesla stock and is skeptical of the company’s lofty valuations.

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.

Price Action: Tesla shares closed almost 12% lower in Tuesday’s regular trading session at $1,023.50.

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