Michael Burry’s Big Short Warning Hits Tesla as Harsh New Reality Dawns
Michael Burry just flashed a familiar signal—and Tesla's in the crosshairs. The investor who called the 2008 housing crash is betting against the electric vehicle giant again, pointing to what he sees as a fundamental mismatch between its sky-high valuation and an increasingly competitive landscape.
The Warning Shot
This isn't Burry's first rodeo with Tesla. His latest move echoes his previous short positions, suggesting he believes the company's story is due for a brutal market correction. The 'Big Short' playbook is back, targeting one of the most iconic names in modern tech.
A Shifting Landscape
Burry's warning lands as the EV sector faces a perfect storm. Rivals are catching up, demand curves are flattening in key markets, and the cost of capital isn't what it used to be. The growth-at-any-price mantra that fueled Tesla's rise is colliding with old-school fundamentals—the kind Burry built his reputation on.
Market Mechanics at Play
For crypto natives, this feels familiar. It's a classic narrative vs. numbers clash. Just like in digital assets, a compelling story can drive a valuation for years—until the ledger doesn't lie. Tesla's reality check could signal a broader pivot where profitability finally trumps potential, a shift that would ripple across all risk-on assets.
The takeaway? When a legend known for spotting bubbles points at the biggest one in the room, it pays to look. After all, on Wall Street, the only thing harder than making a fortune is admitting the party's over while the music's still playing.
Michael Burry on Tesla’s Price: Why He Says Valuation No Longer Makes Sense
Michael Burry says Tesla’s valuation has drifted far beyond reality. He points out that the stock trades at an astonishing 209 times forward earnings. That multiple sits miles above the S&P 500’s 22 and even Tesla’s own five-year average of 94. According to him, this gap is not based on strong fundamentals. Instead, he argues that investors chase big promises without checking the math. And he warns that this enthusiasm leaves little room for error. Moreover, Burry stresses that Tesla expands its share count by about 3.6% each year through stock-based compensation. He notes that the company also refuses to run buybacks, which increases the dilution effect. Because of this, shareholders own less of the company each year. And Burry believes Elon Musk’s massive $1 trillion pay package will only make this worse.
Tesla, Tech Pivots, and the Big Short Mindset
Burry also questioned Tesla’s long list of bold tech claims. He says Musk’s supporters pivot from one dream to another whenever competition rises. First they pushed electric cars. Then autonomous driving. Now they highlight robots and AI. Burry argues that these shifts signal a strategy built more on storytelling than execution. And he believes this pattern echoes his broader “Big Short” investment mindset: look beneath the hype, find the weak points, and call them out early. This is why he remains skeptical — even as markets cheer Tesla’s next big idea.
Wall Street Stays Bullish on Tesla Despite Big Short Concerns
While Michael Burry dismisses Tesla’s valuation as extreme, major analysts see a different picture. Last week, Melius Research called Tesla a “must own,” citing its rapid progress in autonomy and chipmaking. Days earlier, Stifel raised its price target, pointing to momentum in full self-driving and robotaxis. These analysts believe Tesla can turn its futuristic promises into real markets. And they argue the company still leads in software, data, and manufacturing scale. But the gap between analyst Optimism and Burry’s warnings keeps widening. And this sets up a sharp divide: is Tesla preparing for a massive breakthrough — or a painful comedown?
Why Michael Burry’s Latest Big Short Warnings Go Beyond Tesla
Tesla is only part of Burry’s growing critique of today’s tech boom. He recently revealed short positions in Nvidia and Palantir, arguing that AI demand is not as strong as it looks. He claims vendors boost sales through circular financing and hide the real depreciation of hardware. Nvidia pushed back with a lengthy memo saying Burry miscalculated. Yet he countered again, comparing the company not to Enron but to Cisco in the late 1990s. This broader skepticism fuels Burry’s reputation as a long-term bear. He nailed the housing collapse early, but many of his later warnings came too soon. Still, his voice carries weight — especially when he targets a giant like Tesla. And with markets stretched and expectations high, his latest big short-style caution deserves attention.
A Market Split Between Faith and Fear
Tesla stands at a crossroads. Michael Burry insists the numbers don’t add up. Analysts claim the future looks bright. Investors now face two sharply different narratives. One leans on optimism, scale, and technological ambition. The other leans on valuation discipline, dilution math, and lessons from past bubbles. Tesla has defied skeptics before. But as Burry steps up his criticism, the debate over its true worth grows louder than ever.
