Michael Burry lashes out at Tesla: shares “ridiculously overvalued”. What has he foreseen this time?

Michael Burry - the visionary investor who managed to predict the 2007–2008 financial crisis - is making headlines again and stepping back into the spotlight of the economic and financial world. This comes less than a month after he returned to the forefront by betting over one billion dollars against Nvidia and Palantir, titans of the Artificial Intelligence sector.

On his Substack, the investor described Tesla’s shares as “ridiculously overvalued.” According to him, the new $1 trillion compensation package destined for Elon Musk is not only enormous: it is the prelude to shareholder dilution that is set to continue for years. Burry calculates that the automaker’s stock-based compensation results in dilution of about 3.6% per year, with no buybacks to offset the impact.

A final question naturally arises: if this trend continues, how long will investors be willing to bet on the promise of a Tesla-branded future?

Andrea Pelucchi