‘Big Short’ icon Michael Burry unloads on Elon – Business News
Michael Burry tore into Tesla’s sky-high valuation, blasting the electric-vehicle giant as “ridiculously overvalued” in a recent broadside that marked his most pointed assault on the company in years.
The investor of “The Big Short” fame took to his new Substack platform late Sunday to argue that Tesla’s market cap has been inflated for a long stretch and that Elon Musk’s newly authorized $1 trillion pay bundle will additional dilute the company’s stock.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” wrote Burry, whose prescient place on the 2008 financial disaster made him the star of Michael Lewis’ “The Big Short,” which was later changed into a film.
Michael Burry tore into Tesla’s sky-high valuation, blasting the electric-vehicle giant as “ridiculously overvalued.” WireImage
The Austin-based EV maker is price $1.38 trillion, with stock trading at round $427 a share as of Monday morning.
Burry depicted Tesla followers as gleefully leaping from delusional storyline to a different, 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 critique marked Burry’s newest assault on what he now argues is a tech bubble stretching throughout a number of corporations.
He lately disclosed bearish positions in opposition to Nvidia and Palantir, clashing with each companies over what he calls a market frenzy disconnected from business fundamentals. Palantir CEO Alex Karp responded by calling Burry “bats–t crazy.”
Burry’s return to public commentary has coincided with a main shift in his investment strategy. He deregistered his hedge fund final month and launched his Substack days later, promising more direct, unfiltered evaluation.
The Post has sought remark from Tesla.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” he wrote. ZUMAPRESS.com
Burry’s feedback put him on a long listing of skeptics who say Tesla’s valuation can’t be justified. Shares commerce at more than 250 instances the company’s earnings, far above different automakers.
Musk has made short-sellers one of his favored targets, accusing them of spreading misinformation and making an attempt to govern the stock for revenue. Last yr, he predicted that Microsoft co-founder Bill Gates can be “obliterated” for shorting Tesla stock.
In a 2017 interview he referred to as short sellers “jerks who want us to die,” including: “They’re constantly trying to make up false rumors and amplify any negative rumors. It’s a really big incentive to lie and attack my integrity. It’s really awful.”
Burry’s post instantly reignited tensions between Tesla CEO Elon Musk and the short-selling group he has railed in opposition to for years. REUTERS
Musk has additionally questioned the essential legitimacy of short-selling.
Burry’s earlier wager in opposition to Tesla got here in 2021, when he constructed a sizable short place price lots of of thousands and thousands of {dollars} earlier than exiting that very same yr, calling it “just a trade,” Reuters famous.
This time, his argument facilities on each competitors and what he views as extreme optimism baked into Tesla’s share price.
Since its IPO practically twenty years in the past, shares of Tesla have soared 27,000%. Perplexity
Tesla nonetheless held about 41% of the US electric vehicle market as of August, however the determine has declined as different automakers have launched more EV fashions.
Even with rising competitors, Tesla’s stock has gained 11% this yr, rebounding from a wobble earlier in 2025 tied to Dogecoin-related volatility.
Investors have cheered Tesla’s rollout of robo-taxis and reaffirmed help for Musk’s huge incentive bundle, which relies upon on the company reaching an $8.5 trillion market capitalization over the subsequent decade — practically twice the worth of chip giant Nvidia.
Tesla’s valuation has long been a lightning rod, drawing market veterans who view the stock as untethered from standard metrics.
In 2023, Jim Chanos, the outstanding hedge fund supervisor and short vendor, mentioned that the shares had been overvalued. Others have echoed the critique over years of bruising short-seller battles that ended with many detractors struggling steep losses as Tesla’s stock surged.
