“Tesla’s market cap is ridiculously overvalued today and has been that way for a long time,” Burry wrote in his Substack newsletter “Cassandra Unchained” on Sunday.The pay package could earn Tesla’s CEO as much as $1 trillion in stock over the next decade, provided Musk, already the richest man in the world, ensures the company reaches a series of milestones.
Tesla’s shares were trading at about 209 times their forward earnings at the last close, well above their own five-year average of 94. The S&P 500, meanwhile, is trading at about 22 times their forward earnings, according to data compiled by LSEG.
Tesla did not immediately respond to a Reuters request for comment.
The bearish view on Tesla is not Burry’s first. Scion Asset Management announced a large bearish options bet on Tesla in May 2021.
He later told CNBC in October 2021 that he was no longer betting against the company and that his position was just a trade.
Burry’s shorting of subprime mortgages during the housing market crash was chronicled in Michael Lewis’ book “The Big Short” and its film adaptation.
Recently, Burry has stepped up criticism of tech heavyweights like Nvidia and Palantir Technologies, 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 and said the paid newsletter had his “full attention” after he closed his hedge fund Scion Asset Management and returned capital to investors.
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