Michael Burry: "Tesla is Overvalued, But I'm Not Shorting the Stock"

Michael Burry, the famed investor who predicted the 2008 housing market crash, is once again in the spotlight—this time for his remarks about Tesla. Despite calling the company “ridiculously overvalued,” he claims he is not betting against its stock. “I’m not short,” Burry replied when followers on X (formerly Twitter) pressed him to clarify whether his bearish commentary meant he held a short position on TSLA.

Tesla Faces Delivery Decline, Yet Shares Surge Despite growing concerns from investors over weakening demand, Tesla released its estimated annual vehicle deliveries—approximately 1.6 million units, marking a year-over-year drop of more than 8%. This would be the second consecutive annual decline in deliveries. For Q4, analysts expect 422,850 vehicles delivered, a 15% drop compared to the same period in 2024. Bloomberg’s estimate was slightly higher at 440,907 vehicles, still representing an 11% decrease. Notably, Tesla publicly released these estimates, which it usually shares privately with analysts—surprising many market watchers. Despite these figures, Tesla shares have risen 11% year-to-date, while the S&P 500 is up 17%. Investors remain confident in Tesla’s future potential, even as current delivery volumes decline.

Burry Doubts AI, Musk Defends Tesla As bearish sentiment around Tesla builds, Elon Musk took to X to reaffirm his optimism, posting that the Tesla Model Y is now the world’s best-selling car for the third consecutive year. He also defended his $1 trillion compensation package, approved by shareholders, stating: “The value of my Tesla and SpaceX shares, which make up nearly all my wealth, only rises based on how many useful products we produce.” Meanwhile, Burry remains skeptical—especially about the tech sector. He continues to short Nvidia, Palantir, and Google, claiming that AI has become a bubble. In his new report “Cassandra Unchained”, Burry argues that current valuations aren’t justified by actual demand, and he expects AI-related hype to cool significantly in the coming year.

Summary: 🔹 Michael Burry remains skeptical of Tesla but isn’t shorting it

🔹 Tesla faces shrinking delivery numbers, yet investor sentiment is resilient

🔹 Elon Musk defends Tesla’s dominance and his compensation

🔹 AI sector could face a valuation reset, according to Burry

#Tesla , #stockmarket , #ElonMusk , #MichaelBurry , #ElonMusk

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