Michael Burry Renews Criticism of Tesla’s Valuation Amid Market Debate
Michael Burry, the investor famed for predicting the 2008 financial crisis, has intensified his warnings about Tesla's stock valuation. The company trades at 209 times forward earnings—a stark contrast to the S&P 500's 22 and Tesla's own five-year average of 94. Burry attributes this disconnect to speculative fervor rather than fundamentals.
Stock dilution remains a key concern. Tesla increases its share count by roughly 3.6% annually through employee compensation, while eschewing buybacks. Burry argues this erodes shareholder value—a problem compounded by Elon Musk's controversial $1 trillion compensation package.
Wall Street analysts maintain bullish projections despite these critiques, setting up a clash between institutional Optimism and Burry's bearish outlook. The debate underscores broader questions about tech valuations in volatile markets.
