Michael Burry Criticizes Tesla’s Sky-High Valuation
Michael Burry, renowned for his role in “The Big Short,” is criticizing Tesla’s valuation, labeling it as “ridiculously overvalued.” In a post published on his Substack, Burry expressed concerns over the electric vehicle manufacturer’s market capitalization, particularly in light of Elon Musk’s substantial pay package.
Michael Burry’s Criticism of Tesla
Burry highlighted that Tesla’s market value has been inflated for a considerable period. He pointedly remarked that Musk’s $1 trillion incentive plan could further dilute shareholder value.
“The Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up,” Burry stated.
Background on Burry’s Investment Strategy
- Burry previously placed a $530 million bet against Tesla shares in 2021.
- He later exited this position, referring to it as “just a trade.”
- His recent criticisms also include bets against Nvidia and Palantir.
Michael Burry’s skepticism about Tesla is not an isolated opinion. Other investors, including notable short-seller Jim Chanos, have also characterized Tesla’s market value as excessively high. Currently, Tesla’s stock trades at over 250 times its earnings, a stark contrast to other automotive manufacturers.
Tesla’s Market Performance
Despite facing criticism, Tesla’s shares have experienced an 11% increase in 2025, buoyed by excitement over its robotaxi initiatives. Investors remain optimistic as Tesla continues to lead the U.S. electric vehicle market, holding approximately 41% market share as of August 2023.
However, this number shows a decline as new competitors enter the electric vehicle space. Notably, Musk has voiced strong convictions that Tesla will evolve with advancements in robotaxi services and artificial intelligence.
The Competitive Landscape
The electric vehicle and robotics sectors are becoming increasingly competitive, with companies like Google-backed Waymo and Chinese robotics startup Unitree presenting formidable challenges to Tesla’s ambitions.
| Key Facts | Details |
|---|---|
| Current Market Valuation | Over $1 trillion |
| Market Share in EVs | 41% as of August 2023 |
| PE Ratio | Over 250 times earnings |
As Tesla navigates through an evolving market, the scrutiny from investors like Michael Burry reflects broader concerns about sustainable growth in an increasingly competitive environment.
