'Ridiculously Overvalued': 'Big Short' Investor Michael Burry Revives Short Bet Against Tesla Over AI Boom
"Tesla's market capitalization is ridiculously overvalued today and has been for a good long time," Burry wrote in his Substack newsletter 'Cassandra Unchained'
Investor Michael Burry took aim at electric automaker Tesla, in a blog post, saying the Elon Musk-led company is "ridiculously overvalued", days after he voiced concerns about the current AI boom.
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 in his Substack newsletter 'Cassandra Unchained' on Sunday.
The pay package could get the Tesla CEO as much as $1 trillion in stock over the next decade, provided Musk, already the world's richest man, ensures the company achieves a series of milestones.
"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. 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.
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 has hit out against Tesla's critics and short sellers, predicting that the EV maker will become the most valuable company on the planet. Burry's short position against subprime mortgage securities during the housing market crash was chronicled in Michael Lewis's book "The Big Short" and its film adaptation.
Recently, Burry has stepped up criticism of technology heavyweights such as Nvidia, questioning the cloud infrastructure boom and accusing major providers of using aggressive accounting to inflate profits from their massive hardware investments.
Burry launched 'Cassandra Unchained' in November, saying that the paid newsletter had his "full attention" after he closed his hedge fund Scion Asset Management and returned capital to investors.
This is a developing story
