"For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry's short position extended to other supporters of the company, including ARK Invest. Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized."
"While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech. Burry's Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results,"
Michael Burry labeled Tesla's market capitalization as ridiculously overvalued and criticized recurring investor enthusiasm that shifts when competition arrives. Scion Asset Management placed large short bets, including a $530 million position, and expanded those positions to other Tesla supporters such as ARK Invest, but those shorts failed to yield positive returns. Tesla evolved from an automaker identity into a broader robotics, AI, and self-driving technology play, prompting tech-style valuation comparisons. The company experienced significant price volatility, dipping near $220 before rebounding, and continues to draw skepticism from traditional analysts who question its stretched valuation.
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