US EditionMichael Burry Attacks Tesla Valuation
Michael Burry criticized Tesla's valuation as excessively high and highlighted competition risks while noting the company's shares trade at over 250 times earnings, experts say.
- Late Sunday, Michael Burry used his newly launched Substack Cassandra Unchained to call Tesla `ridiculously overvalued` after deregistering his hedge fund Scion Asset Management last month.
- Focusing on stock-based pay, Michael Burry argues the 'tragic algebra' masks true costs and warns Elon Musk's $1 trillion compensation plan will perpetuate dilution and erode Tesla shareholders' value.
- In his analysis, Burry highlights Tesla's share count will expand by roughly 3.6% annually without buybacks, while its shares trade at over 250 times earnings, near a trailing P/E of nearly 300.
- The stock traded around $426 Monday, dipping under 1% after Burry's post but remaining up more than 6% year to date, while roughly three-quarters of analysts maintain buy or hold ratings.
- Beyond Tesla, Michael Burry has disclosed large puts on Nvidia and Palantir and previously shorted about $530 million of Tesla in 2021 before exiting months later.
34 Articles
34 Articles
Michael Burry Attacks Tesla Valuation
Michael Burry, famed for shorting the housing market during the Great Recession, recently made headlines by saying Nvidia Corp. (NASDAQ: NVDA) was wildly overvalued. His new target is Tesla Inc. (NASDAQ: TSLA), which he attacked yesterday, according to several media sources. 24/7 Wall St. Key Points Famed investor Michael Burry believes Tesla Inc. (NASDAQ: TSLA) is ridiculously overvalued. Burry also criticized Tesla CEO Elon Musk’s $1 trilli…
The well-known bass investor Michael Burry, known for having won around $700 million betting against the U.S. real estate market during the 2008 financial crisis, has now put his focus on Tesla. In a post on the Substack network cited by Fortune magazine, he has assured that the car manufacturer’s shares are “ridiculously overrated” and warning that the $1 trillion wage package proposed by founder Elon Musk will be detrimental to shareholders.
'Big Short' Michael Burry Warns Tesla Is 'Ridiculously Overvalued' — Says 'Elon Cult' Remains Bullish Until Competition Shows Up - Tesla (NASDAQ:TSLA)
"The Big Short" investor Michael Burry, known for his profitable bet against the U.S. housing market during the 2008 financial crisis, has slammed Tesla Inc.'s (NASDAQ:TSLA) valuation. Could the EV giant be his next target? ‘Ridiculously Overvalued,' Says Michael Burry Sharing his thoughts in a blog post on Monday, the investor criticized the EV giant's valuation. "Tesla’s market capitalization is ridiculously overvalued today," Burry said in th…
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