Billionaire investor David Einhorn disclosed a new bet against Tesla, despite suffering massive losses in 2020, according to a report by Markets Insider on Tuesday.
- Einhorn’s Greenlight investment company purchased 1,000 contracts against 100,000 Tesla shares in Q4. The shares were notionally valued at $106 million.
- Einhorn’s bet signals a renewal of his long-running bearish outlook on Tesla stock. In recent years, the popular hedge fund manager has moved in and out of positions against the EV giant, creating tensions with its CEO Elon Musk.
- A put option gives the holder the disposal of the stock at a specific price in the future, giving them a profit when a company’s shares fall.
- The SEC filing from Greenlight does not reveal the value of the best against Tesla. Einhorn might have exited the trade and may have generated a good profit, with Tesla falling 17% year-to-date.
The investment fund’s disclosed holdings grew by 10% in value in Q4 to $1.64 billion. TSLA up 0.36%, Pre-market trading.