Michael Burry says Tesla is 'ridiculously overvalued,' slams Musk pay package

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Short seller Michael Burry conscionable took a swipe astatine different richly valued stock: Tesla (TSLA).

Burry, who roseate to fame shorting the lodging marketplace during the 2008 fiscal crisis, dubbed the EV shaper arsenic "ridiculously overvalued" successful a Substack station connected Sunday. Business Insider was archetypal to study connected Burry's latest missive.

His station took purpose astatine the "tragic algebra" of stock-based compensation, and Tesla was an example. Tesla dilutes its banal by 3.6% a year, helium said, and offers nary buybacks.

"Tesla's marketplace capitalization is ridiculously overvalued contiguous and has been for a bully agelong time," Burry said, adding that CEO Elon Musk's $1 trillion dollar wage bundle volition dilute Tesla banal adjacent further. Last month, Tesla shareholders approved the arguable wage bundle astatine its shareholder meeting.

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Burry added different excavation astatine Tesla's assorted pivots arsenic the automaker pushed deeper into different areas of tech.

"As an aside, the Elon cult was all-in connected electrical cars until contention showed up, past all-in connected autonomous driving until contention showed up, and present is all-in connected robots — until contention shows up," Burry wrote successful parentheses.

Burry did not disclose immoderate presumption successful Tesla stock.

Last month, the abbreviated seller took a sizable abbreviated presumption successful some Nvidia (NVDA) and Palantir (PLTR) banal via enactment options, which investors typically bargain if they are betting connected a banal to fall.

Burry besides subsequently deregistered his hedge fund, Scion Capital, and took to Substack to station his views.

Noted abbreviated seller Jim Chanos told Yahoo Finance's Laura Bratton that helium besides had concerns astir Nvidia's usage of vendor financing to boost sales, which Burry complained astir arsenic well.

Both Chanos and Burry person held Tesla abbreviated positions astatine points successful the past.

Musk has successful the past slammed abbreviated sellers of Tesla stock, astir precocious informing Bill Gates to adjacent retired his abbreviated presumption "soon."

While Burry warns astir Tesla's valuation, Wall Street has go progressively bullish.

Last week, Melius Research tabbed the EV shaper a "must own" owed to its autonomy efforts and arsenic CEO Elon Musk talked up its chipmaking progress, which followed Stifel the week earlier upping its terms people and reiterating Tesla's Buy rating, citing Tesla's spot successful afloat self-driving (FSD) and its robotaxi service.