Michael Burry Bets Against Tesla, Citing Overvaluation and Share Dilution
Michael Burry, the investor renowned for predicting the 2008 financial crisis, has taken a short position against Tesla, labeling the stock "ridiculously overvalued." Tesla trades at nearly 200 times forward earnings, a premium that dwarfs most tech peers. Burry highlights annual shareholder dilution of 3.6% from stock-based compensation, compounded by the absence of a buyback program.
Elon Musk’s proposed $1 trillion pay package could exacerbate dilution, potentially issuing 300 million new shares. Tesla’s stock remains rangebound between $400 support and $440 resistance amid weakening momentum. European demand shows cracks, with French registrations plunging 57.8% year-over-year in November.