Michael Burry Criticizes Tesla’s Valuation and Stock Dilution
Hedge fund manager Michael Burry has labeled Tesla as "ridiculously overvalued" at 209 times forward earnings, while taking aim at its 3.6% annual stock dilution. His critique, first reported by Business Insider, extended to Elon Musk's leadership, particularly Tesla's reliance on stock-based compensation without buybacks to support share prices. Burry highlighted Musk's $1 trillion compensation package, recently approved by shareholders, as exacerbating dilution pressures.
Burry also scrutinized Tesla's shifting technological focus, noting how the company pivots from one futuristic promise to another—electric vehicles, autonomous driving, and now robotics—as competition intensifies. Despite his sharp criticism, Burry did not disclose any current short or long positions in Tesla. His remarks coincide with Wall Street analysts revising Tesla's outlook, adding fuel to the debate over its valuation.
