A dangerous $3.3 Billion Bet on the drop of Tesla and Elon Musk

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Elon Musk

The electric-vehicle leader has faced hedge funds betting that it would fail since tesla started up. To bet on the tesla market collapse Elon Musk does not like investors and financiers. Last month the world’s richest man attacked bill gates.

who was formerly the richest in the world .because the Microsoft co-founder had a short position of $500 million against Tesla. that the price will drop selling stock short is a bet.

Musk recently wrote to Gates Sorry, but I cannot take your philanthropy on climate change seriously when you have a massive short position against Tesla the company doing the most to solve climate change .for some common causes the two billionaires were having about working together. The mogul later accompanied his criticism with an unflattering and cruel tweet aimed at Gates.

Elon Musk

A $3.3 Billion Bet since the maker of the Model 3 and Model S sedans is the world’s sixth largest company by market value for the moment Tesla is acclaimed by investors. Its market capitalization at last check was $901 billion.

That gives Musk the last word. from betting against him and tesla this position has not prevented financiers. The latest: Scott Burg, a chief investment officer of Deer Park Road Management, Steamboat Springs, Colo.

Tesla shares as of June 30 According to a recent Securities and Exchange Commission filing, Burg acquired put options on 4,786,400 .as of June 30 the value of these derivative instruments was $3.3 billion.

Elon Musk

Elon Musk

before a specific date at a particular price put option grants the holder the right but not the obligation to sell shares of the underlying security. a put option is acquired by an investor because the future performance of the underlying stock they are bearish.

At last check, Tesla shares ended the second quarter at $673.42 around $863 they are trading since the end of the second quarter Tesla shares have gained 28% at least not yet that means burgs bet hasn’t paid off. after being contacted by Bloomberg News about this latest bet The financier recently deleted his Twitter account. not surprising the bet is tesla and musk for many years now burg has been predicting the downfall.

on Dec. 22, 2020, the financier predicted. now tesla will be squashed like a bug Burg regularly posted messages on Twitter using the hashtag #TSLAQ prior to deleting this account.

By the most extreme critics of musk and tesla, They are convinced that the manufacturer of electric vehicles will go bankrupt. According to Investopedia, the company had filed under the bankruptcy laws The “Q” until 2016 was placed at the end of a Nasdaq stock symbol to indicate Burg tweeted on May 20, On the platform according to records kept by Tesla fans .tesla shares fallen down more than 6% For short sellers tesla has been a disaster.

Elon Musk

In distressed credit opportunities, Deer Park Road Management specializes Early in August Deer Park’s founder and CEO, Michael Craig-Scheckman, and Burg, who is managing partner and chief investment officer according to a post from the company’s official Twitter account.

Distressed Credit Opportunities held a conference call to discuss the Credit Cycle Rotation. almost all automakers want to develop electric models to dominate the EV market because tesla burgs bet is surprising. for the next two years The company is also ahead in autonomous vehicles and has an extremely busy roadmap notably with the launch of the highly anticipated Cybertruck, a futuristic pickup/truck.make a huge bet against Tesla The financier is not the first Capital has paid a serious price Hedge-fund heavyweight David Einhorn of Greenlight.

Elon Musk

In 2018, Musk literally had shorts delivered to Einhorn when Tesla was on the brink of the financial abyss . For shorts, I want to thank @elonmusk on august 2018 Einhorn posted on Twitter a photo of the shorts. “He is a man of his word! They did come with some manufacturing defects. #tesla. musk commented, put them on, and post a selfie.

 

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