Michael Burry’s Bearish Short Positions on Tesla and Caterpillar Yield Significant July Decline

Michael Burry’s recent bearish short bets against several high‑growth stocks, including Tesla and Caterpillar, have proven profitable following a sharp July sell‑off. In a Substack post dated June 30, Burry disclosed that he opened short positions in Caterpillar, Nvidia, the VanEck Semiconductor ETF, Applied Materials, and Tesla after each had experienced strong rallies. Short selling involves borrowing shares, selling them, and later repurchasing at a lower price. Tesla emerged as his biggest winner, dropping 14.5% on Thursday after weak earnings, which extended its July decline to roughly 24% and brought the price to $319.69, down from his June short entry of $416.22. Caterpillar also fell about 16% month‑to‑date, to $894.54 from the $1,060.98 level where Burry initiated the short. While Burry noted that he had never shorted Caterpillar before, he highlighted its recent downturn. The semiconductor‑focused VanEck ETF fell to $551 from his short entry of $642.80, and Applied Materials slipped to $562.80 from $729.40. Nvidia, however, rose to $208.76 from $198.09, defying the trend. Collectively, four of the five disclosed trades have moved in Burry’s favor. The broader pullback reflects a correction in high‑flying industrial and technology stocks after a robust first‑half rally driven by AI‑related optimism. It remains uncertain whether Burry still holds any of these positions, as his active trading style often involves frequent entry and exit.

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