"The Reddit discussion captured the retail investing community's growing skepticism. One top commenter observed: "Burry has been right before when everyone else was wrong. The Big Short wasn't a fluke." Another user added: "At 294x earnings, you're not buying a car company - you're buying a religion. And religions don't trade on fundamentals." A third pointed out: "The math is simple: Tesla would need to become more profitable than Apple and Google combined to justify this valuation.""
"Burry's thesis finds substantial support in Tesla's fundamental metrics. The company trades at 294x trailing earnings and 192x forward earnings, multiples that dwarf traditional automakers by a factor of 30 or more. With a price-to-sales ratio of 14.96 and EV/EBITDA at 108, investors are paying extraordinary premiums for a business generating just 5.31% profit margins. The PEG ratio of 8.59 suggests massive overvaluation relative to growth, particularly troubling given that quarterly earnings declined 37% year-over-year in Q3 2025."
Tesla shares fell 1.2% to $424.98 on December 2, 2025, while market capitalization approached $1.43 trillion. Retail investor sentiment turned very bearish after a high-profile call labeling the stock "ridiculously overvalued," producing a viral Reddit thread and a sentiment score of 12. Key valuation metrics are extreme: 294x trailing P/E, 192x forward P/E, price-to-sales of 14.96, EV/EBITDA of 108, PEG of 8.59 and profit margins near 5.31%. Quarterly earnings declined 37% year-over-year in Q3 2025. Net income fell 36.6% to $1.37 billion despite 11.6% revenue growth and operating margin compressed to 5.8%.
Read at 24/7 Wall St.
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