Michael Burry — the famed “Big Short” investor — has shifted his criticism from the AI boom to Tesla, calling the automaker “ridiculously overvalued” in a new post on his Cassandra Unchained newsletter.
Key Points
- Burry says Tesla dilutes shareholders ~3.6% per year, with no buybacks, and warns Elon Musk’s record $1 trillion potential pay package will accelerate dilution.
- Tesla trades at 209x forward earnings, far above:
- 94x: its 5-year average
- 22x: S&P 500 average
- Burry previously made a major bearish bet on Tesla in 2021 via options.
- He has recently criticized tech giants like Nvidia and Palantir, arguing that the cloud/AI infrastructure boom relies on aggressive accounting to boost profits.
- Burry closed his hedge fund Scion Asset Management and now focuses fully on his paid newsletter launched in November.
The famed contrarian investor is once again sounding alarms — this time targeting the heart of the EV and AI euphoria.