Although there are many people on Wall Street who are not used to Musk, Scott Burg may be the first distressed bond fund manager to use multibillion-dollar options to short Tesla, Inc., betting that Tesla, Inc. will be squashed like a bug.

This Deer Park Road Management Co. Burg bought put options on nearly 4.8 million Tesla, Inc. shares in the second quarter, according to regulatory filings filed this week by the company's chief investment officer in a 2020 tweet. As of the end of June, the shares had a face value of about $3.2 billion, but their value at risk was much lower.

Burg stepped up its criticism of Tesla, Inc. and Musk on social media this year, abruptly deleting his Twitter account on Wednesday after being asked about his put options. Neither Deer Park nor Tesla, Inc. responded to text messages seeking comment.

Tesla, Inc. 's shares fell 38 per cent in the second quarter on heightened concerns about production at Tesla, Inc. 's Shanghai plant. But it has rebounded sharply since June 30, up 35% by Thursday's close. In its filings this week, Deer Park did not disclose the strike price or expiration date of the put options purchased.

Deer Park said in the announcement that the company mainly focuses on non-performing securities, including mortgage-backed bonds and corporate bonds, but also invests in stocks and equity derivatives.