Michael Burry, the investor who shot to fame for calling the 2008 housing crash, has taken aim at Tesla Inc (NASDAQ:TSLA) again, arguing the carmaker’s valuation has drifted far beyond reason.
In a recent Substack post, he criticised the company’s heavy use of stock-based pay, claiming it dilutes existing shareholders by more than 3% each year. With Tesla not buying back shares, he believes the effect simply compounds.
His stance arrives as investors debate Elon Musk’s proposed $1 trillion compensation package, a plan tied to performance hurdles but still large enough to unsettle some of Tesla’s biggest backers.
Norway’s sovereign wealth fund has already voted against it, citing excessive dilution and growing concerns about the company’s dependence on Musk.
Burry’s warning echoes his earlier scepticism toward other highly valued tech names, including Nvidia, where he issued similar dilution concerns. With talk of an artificial-intelligence bubble gathering pace, his comments are adding fuel to the debate over stretched valuations.
Tesla’s shares, up around 6% this year and trading at close to 200 times next-year earnings estimates, continue to look punchy. As one market strategist put it, the stock is priced for “robotaxi-level success”, leaving little room for missteps. Even so, early market reaction to Burry’s latest salvo has been restrained.