Elon Musk’s Tesla faces fresh criticism from ‘Big Short’ investor Michael Burry

Core Viewpoint - Tesla's market capitalization is deemed "ridiculously overvalued" by investor Michael Burry, who also highlights concerns regarding shareholder dilution due to share issuance and Musk's compensation plan [1][2]. Group 1: Market Valuation and Shareholder Impact - Burry claims that Tesla reduces existing shareholders' stakes by approximately 3.6% annually through ongoing share issuance and the lack of buybacks [2]. - Tesla's market value is currently around $1.43 trillion, making it the most valuable automaker globally, significantly larger than Toyota's valuation of about $260 billion [3]. - As of the latest trading session, Tesla shares were priced between $427 and $430, reflecting a slight decline from the previous session, although the share price has increased sharply over the past year [6]. Group 2: Executive Compensation - Tesla shareholders recently approved Musk's $1 trillion pay package, which is the largest executive compensation plan on record, potentially granting him up to 12% of Tesla's stock [3]. - The revised compensation plan was initiated after a Delaware judge voided Musk's earlier $56 billion pay package, which is still under litigation [4]. Group 3: Broader Market Concerns - Burry has also criticized other tech giants, including Nvidia and Palantir, questioning the sustainability of the cloud infrastructure boom and accusing these companies of using aggressive accounting practices to inflate profits [8].