Overview
- Publishing on his new paid Substack, Burry said Tesla’s value has been inflated for a long time and singled out stock-based compensation as a key distortion.
- He estimated Tesla dilutes shareholders by about 3.6% each year without buybacks and warned the newly approved pay package for Elon Musk would extend that dilution.
- Tesla trades at roughly 200 times forward earnings with a market capitalization near $1.4 trillion, far above typical auto-industry multiples, according to market data cited in coverage.
- Burry has recently disclosed bearish option positions against Nvidia and Palantir, previously shorted Tesla in 2021, and has not disclosed a current Tesla position after deregistering Scion and shifting to public commentary.
- Institutional scrutiny of Tesla’s compensation framework has increased, with Norges Bank Investment Management voting against Musk’s plan, while immediate market reaction to Burry’s post was limited.