"Big Short" Investor Michael Burry Says Tesla "Ridiculously Overvalued" - CleanTechnica

Michael Burry, the investor known for "The Big Short," has publicly stated that Tesla is "ridiculously overvalued," a position he elaborated on in his newly launched Substack column. Burry criticizes Tesla's stock-based compensation practices, arguing that these costs are not properly accounted for under Generally Accepted Accounting Principles (GAAP). He contends that Tesla dilutes shareholders by about 3.6% annually without conducting buybacks, which, when factored into true profit calculations, should lead to a lower valuation for the company. This perspective aligns with Warren Buffett’s earlier criticism of stock-based compensation as a real expense that companies often obscure. The article also highlights Tesla’s current critical juncture related to its Full Self Driving (FSD) technology. While some investors are optimistic that achieving truly driverless capabilities will dramatically increase vehicle demand and revenue, the technology faces significant challenges, including rising hardware and AI costs and recent accidents involving Tesla’s limited robotaxi fleet. The company is under