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News  ›  Benzinga

Michael Burry Says Tesla Is 'Ridiculously Overvalued' After Earlier Warning About The Elon 'Cult'

Benzinga Logo Benzinga By Vishaal Sanjay
Michael Burry Says Tesla Is 'Ridiculously Overvalued' After Earlier Warning About The Elon 'Cult'

Investor Michael Burry criticized Tesla as 'ridiculously overvalued,' citing decelerating sales momentum and a P/E ratio of 204x compared to the industry average of 17.47x. Tesla's Q4 consensus estimates came in 14.93% below the prior quarter and 15% below year-over-year. Burry also warned about Elon Musk's trillion-dollar pay package causing 3.6% annual shareholder dilution. Tesla remains the world's most valuable automaker with a $1.53 trillion market cap despite facing its second consecutive annual sales decline.

Insights
BMLpH   neutral

The announcement indicates a significant increase in shareholding, which suggests strategic interest but without explicit positive or negative implications


TSLA   negative

Michael Burry, a renowned investor who correctly predicted the 2008 financial crisis, explicitly called Tesla 'ridiculously overvalued.' The company trades at 204x forward earnings versus industry average of 17.47x, faces declining sales momentum (Q4 down 14.93% QoQ and 15% YoY), and is headed for its second consecutive annual sales decline. Additionally, concerns about shareholder dilution from Elon Musk's compensation package and competitive pressures in autonomous vehicles and robotics further support the negative outlook.