Famed investor Michael Burry called Tesla shares “ridiculously overvalued” in a blog post Sunday, adding the company to a growing list of AI and Tech giants he’s been criticizing.
“Tesla‘s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry wrote in his Substack newsletter “Cassandra Unchained.”
Burry estimated that Tesla dilutes its shareholders at approximately 3.6% annually with no share buybacks.
The investor warned that Chief Executive Officer Elon Musk’s pay package — which could deliver as much as $1 trillion in stock over the next decade if the company hits ambitious milestones — will continue the dilution.
As of press time, Tesla shares were trading 0.9% lower at $426.
The stock hit a year-to-date high of $474.07 on November 3, just $14 shy of its all-time high of $488.54 reached in December 2024.
In late November, Tesla shares surged more than 7% in a single session after Musk announced on X that the company was close to launching its next-generation artificial intelligence chip.
Shifting Investment Thesis
Burry also took aim at Tesla‘s evolving narrative, writing that “the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots—until competition shows up.”
The bearish stance marks a return to a familiar target for Burry.
Scion Asset Management disclosed a large bearish bet via options on approximately $530 million worth of Tesla shares in May 2021. However, Burry told CNBC in October 2021 that he had exited the position, characterizing it as “just a trade” rather than a long-term investment thesis.
Burry has recently questioned investments in Nvidia and Palantir Technologies. challenging the sustainability of the cloud infrastructure boom and accusing major providers of using aggressive accounting practices to inflate profits from massive hardware investments.
