Here's Why Betting Against Tesla Stock May Not Be Wise
A Securities and Exchange Commission (SEC) filing recently revealed that Michael Burry, the investor made famous from predicting and profiting from the subprime mortgage crisis, is betting against Tesla (NASDAQ: TSLA) shares. His firm, Scion Asset Management, owned puts that gave him a bet against more than 800,000 shares of Tesla as of March 31. Though the details of the put contracts or unknown, investors profit from puts when the prices of the stocks they are betting against decline.
Despite Burry's success in profiting from the subprime mortgage crisis, investors should think twice before they follow in the famed investor's footsteps with a similar move.
Here are three specific reasons I wouldn't bet against the growth stock.
Source Fool.com
