Prominent investor Michael Burry has revealed he is escalating his bearish wagers on select technology stocks, adding short positions against NVIDIA and the VanEck Semiconductor ETF, while confirming his profitable short bet on Tesla Motors remains open.
Burry, globally recognized for correctly predicting and betting against the 2008 U.S. subprime mortgage crisis and the real-life inspiration for the protagonist in the Oscar-winning film "The Big Short," shared these details in a recent post.
"I have not closed my Tesla Motors short position. It is getting smaller on its own," Burry wrote in a new Substack post on Friday.
The electric vehicle manufacturer's stock plummeted 15% on Thursday following disappointing quarterly results. The shares fell another 3% on Friday, bringing the total decline for July to approximately 26%, with the stock price hovering around $308. Burry stated in late June that he had shorted Tesla Motors at a price of $416.22.
Burry indicated he continues to hold substantial put options on NVIDIA, and through put options, he maintains short positions against the Invesco QQQ Trust and Palantir Technologies.
Explaining his investment thesis for NVIDIA, Burry argued that demand for artificial intelligence infrastructure is more heavily driven by financing arrangements rather than end-user demand. He suggested that "a significant portion, perhaps even the majority" of current and future demand is realized through off-balance-sheet circular financing structures.
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