Tesla(US:TSLA) New York Post·2025-12-01 17:23Core Viewpoint - Michael Burry criticizes Tesla's valuation as "ridiculously overvalued," arguing that it has been inflated for an extended period and that Elon Musk's recent $1 trillion pay package will further dilute the company's stock [1][2][4]. Company Valuation - Tesla's current market capitalization stands at $1.38 trillion, with shares trading around $427 as of Monday morning [4]. - The company's shares are trading at more than 250 times its earnings, significantly higher than other automakers [7]. Market Competition - Burry highlights the shift in Tesla fans' focus from electric cars to autonomous driving and now to robots, suggesting that this pattern will continue as competition increases [5]. - As of August, Tesla held approximately 41% of the U.S. electric vehicle market, although this figure has declined due to the introduction of more EV models by other automakers [13]. Investor Sentiment - Despite rising competition, Tesla's stock has gained 11% this year, recovering from earlier volatility related to Dogecoin [13]. - Investors have shown support for Tesla's rollout of robo-taxis and Musk's substantial incentive package, which is contingent on achieving an $8.5 trillion market capitalization over the next decade [14]. Historical Context - Since its IPO nearly two decades ago, Tesla's shares have surged by 27,000% [16]. - Burry's previous short position against Tesla in 2021 was significant, valued at hundreds of millions, but he exited that position, labeling it "just a trade" [12].