Yesterday morning, at least one Tesla (NASDAQ:TSLA) Megapack battery caught fire at one of PG&E’s (NYSE:PCG) shared energy storage facilities in Monterey, California. A spokesperson for PG&E stated no injuries or customer power outages occurred as of late Tuesday morning. Vistra (NYSE:VST), which shares the facility, also noted it did not experience any disruptions from the fire. The cause of the fire has not yet been determined, although an investigation will be initiated in the weeks to come.
The Tesla Megapack is a massive battery that allows grid operators to move increased capacity from point A to point B. It can also store energy for later use or for outages. PG&E had commissioned its Megapack system back in April.
However, this isn’t the first Megapack fire incident. In July 2021, a Megapack caught fire in Australia’s Victorian Big Battery site while undergoing testing. No injuries or outages were reported.
These events have caused famed hedge fund manager Michael Burry to wish he was short TSLA stock. Let’s get into the details.
TSLA Stock: Burry Wishes He Was Short
Following the events at the Monterey energy facility, Burry tweeted out a link to the news with a caption: “If I am tweeting this you can bet I am not short it. But I should be.” The tweet has since been deleted, as in usual Burry fashion.
Burry is the manager and founder of Scion Asset Management. As of June 30, the fund owned only one position in its 13F portfolio: Geo Group (NYSE:GEO). Burry also has a spotted past with Tesla CEO Elon Musk.
During Q3 2021, Burry finally exited his TSLA short position. Previously, he had owned put options against over 800,000 shares of the electric vehicle (EV) company and likely sold out for a loss. When asked, Burry said the position was only a “trade” and explained that the “options bets were extremely asymmetric, and the media was off by orders of magnitude.”
It’s clear that there is distrust between the two parties. Burry is highly skeptical of Tesla’s future potential and has made it very clear on social media. Still, it seems like Musk has a one-up on the battle following Burry’s short exit.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.