""Tesla's market capitalization is ridiculously overvalued today and has been for a good long time," he wrote bluntly. He points to the "Elon cult" - die-hard fans who championed electric cars until rivals like BYD and legacy players ramped up, then shifted to autonomous driving dreams, and now hype humanoid robots like Optimus. But Burry warns competition will inevitably erode these edges, as it has Tesla's 41% U.S. EV market share."
""Michael Burry, the billionaire investor immortalized in The Big Short for predicting the 2008 housing crash, has stirred the markets again. Just months ago, he made headlines by betting against the AI frenzy, snapping up put options on Nvidia (NASDAQ:NVDA) and Palantir Technologies (). Those moves signaled his skepticism toward the tech sector's explosive growth, driven by hype over artificial intelligence.""
Michael Burry opened a fresh short position on Tesla, labeling the company ridiculously overvalued and reviving his bearish stance. Tesla shares trade near $430 with a market capitalization above $1.4 trillion and a trailing P/E exceeding 287, far above traditional automakers under 15. Burry links the premium to shifting investor narratives—from electric-vehicle dominance to autonomous driving and humanoid robots—and warns that competition from BYD and incumbent manufacturers will erode advantages. He also flags leadership risk, criticizing Elon Musk's newly approved $1 trillion compensation package as massive dilution and questioning governance amid intensifying industry competition.
Read at 24/7 Wall St.
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