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Michael Burry Slams Tesla's 'Ridiculously Overvalued' Stock

12/1/2025

Summary

Story summary

Michael Burry, known for The Big Short, has criticized Tesla's valuation as "ridiculously overvalued" in his Substack.
He cites Tesla's 3.6% annual dilution from stock-based compensation, amplified by Elon Musk's $1 trillion pay package, undermining shareholder value.
He notes Tesla trades at a P/E ratio of 295 despite declining earnings, arguing the market is irrational.
He adds that these concerns reflect worries about Tesla's growth sustainability amid increasing EV competition.

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Story summary

Michael Burry, known for The Big Short, has criticized Tesla's valuation as "ridiculously overvalued" in his Substack.
He cites Tesla's 3.6% annual dilution from stock-based compensation, amplified by Elon Musk's $1 trillion pay package, undermining shareholder value.
He notes Tesla trades at a P/E ratio of 295 despite declining earnings, arguing the market is irrational.
He adds that these concerns reflect worries about Tesla's growth sustainability amid increasing EV competition.