‘Big Short’ investor Michael Burry says Tesla is ‘ridiculously overvalued’
Michael Burry, the renowned investor known for his role in predicting the 2008 housing market crash, is once again making headlines, this time targeting Tesla and its CEO, Elon Musk. In a recent post on his Substack, Burry labeled Tesla “ridiculously overvalued,” voicing concerns over its market capitalization and the implications of Musk’s substantial pay package, which is contingent on the company’s market cap reaching $8.5 trillion over the next decade. Burry criticized the so-called “Elon cult,” suggesting that Tesla’s followers have shifted their focus from electric vehicles to autonomous driving and now to robotics as competition intensifies in these sectors. This isn’t the first time Burry has expressed skepticism about Tesla; he previously shorted $530 million worth of Tesla shares in 2021, although he later described that move as merely a trade.
Burry’s critiques come at a time when Tesla’s stock has seen a resurgence, with shares up 11% in 2025, buoyed by optimism surrounding the company’s robotaxi rollout. However, the electric vehicle market is becoming increasingly competitive, with Tesla currently holding a 41% market share in the U.S., a figure that has declined as rivals introduce new electric models. Notably, Burry is not alone in his assessment of Tesla’s valuation; other prominent investors, including short-seller Jim Chanos, have also voiced concerns about the company’s inflated stock price, which trades at over 250 times its earnings compared to traditional automakers.
As Burry continues to challenge the prevailing optimism surrounding Tesla and the broader AI boom—having recently disclosed significant short positions against Nvidia and Palantir—his remarks have reignited discussions about the sustainability of tech valuations in an increasingly competitive landscape. Musk, on his part, has been vocal against short sellers, maintaining a bullish outlook on Tesla’s future, particularly with innovations like the robotaxi and the Optimus robot. As the battle between Burry’s skepticism and Musk’s confidence unfolds, the tech and investment communities are closely watching how these dynamics will play out in the coming months.
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Michael Burry
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Michael Burry is back, and he’s turning his fire on Tesla.
The “Big Short” investor called Elon Musk’s automaker “ridiculously overvalued” in a Substack post.
Burry has disclosed big bets against Nvidia and Palantir and used his blog to criticize the AI boom.
Michael Burry
is taking on a who’s who of the world’s biggest tech giants — and now he’s picking a fight with Elon Musk.
The investor of “The Big Short” fame called Tesla “ridiculously overvalued” in a post on his Substack released late Sunday evening, after previously disclosing bets against
Nvidia and Palantir
.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry wrote, adding that he expects Musk’s
$1 trillion dollar pay package
to continue to dilute the company’s shares.
“As an aside, 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,” the legendary investor said.
It’s not the first time Burry has taken aim at Tesla. The investor placed a bet against $530 million worth of Tesla shares in 2021 but exited the position a few months later, with Burry
telling CNBC
the move was “just a trade.”
Tesla did not immediately respond to a request for comment about Burry’s post.
Musk’s EV maker is the latest tech giant to draw the investor’s fire.
Burry, whose
bet against the housing market in 2008
was famously depicted in “The Big Short” movie, has been outspoken in his belief that the current AI boom is a bubble.
Last month, he disclosed bets against Nvidia and Palantir and engaged in a
war of words
with both companies.
In a pivot, he
deregistered his hedge fund
in November and set up his Substack last week.
Burry is not the first to call Tesla overvalued. The company’s shares trade at over 250 times its earnings, far higher than other carmakers, and fellow famed short-seller
Jim Chanos
also said in 2023 that Tesla was overvalued.
Musk hits back at short sellers
Despite a DOGE-related wobble at the start of the year, Tesla’s shares are up 11% in 2025 as investors have cheered the company’s robotaxi rollout.
Musk has hit out against Tesla’s critics and short sellers, predicting that the EV maker will become the most valuable company on the planet.
The billionaire’s $1 trillion pay package, which was approved by Tesla shareholders last month, is contingent on the company’s market cap rising
over the next decade to $8.5 trillion
, nearly double the valuation of Nvidia.
The Cybertruck maker continues to dominate the EV market in the US, with around
41% market share
as of August — but that number has fallen in recent years as competitors have rolled out more electric models.
Musk has said that Tesla’s robotaxi and Optimus robot are the future of the company. But Tesla faces fierce competition there too, from companies like Google-backed Waymo and Chinese
robotics startup Unitree
.
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Business Insider
