Michael Burry says Tesla is 'ridiculously overvalued,' slams Musk pay package

Core Viewpoint - Short seller Michael Burry has criticized Tesla's valuation, labeling it as "ridiculously overvalued" and highlighting concerns over stock dilution and compensation packages [1][2]. Group 1: Valuation Concerns - Burry argues that Tesla's market capitalization has been excessively high for an extended period, exacerbated by CEO Elon Musk's $1 trillion pay package, which will further dilute the stock [2]. - Tesla reportedly dilutes its stock by 3.6% annually and does not engage in stock buybacks, which Burry identifies as a significant issue [1]. Group 2: Competitive Landscape - Burry comments on Tesla's shifting focus from electric vehicles to autonomous driving and now to robotics, suggesting that these pivots are reactive to competition [3]. - He notes that the enthusiasm for Tesla's innovations may wane as competitors emerge in these sectors [3]. Group 3: Market Sentiment - Despite Burry's warnings, Wall Street analysts have shown increasing bullishness towards Tesla, with Melius Research labeling it a "must own" due to advancements in autonomy and chipmaking [5]. - Stifel recently raised its price target and reiterated a Buy rating for Tesla, citing strengths in full self-driving and robotaxi services [5]. Group 4: Short Selling Context - Burry has taken significant short positions in Nvidia and Palantir, indicating a broader skepticism about tech valuations [3][4]. - Both Burry and fellow short seller Jim Chanos have previously held short positions in Tesla, reflecting ongoing concerns about its valuation [4].