Is Michael Burry's criticism of Tesla's valuation and Musk's pay package warranted?

Core Viewpoint - Tesla's market capitalization is considered excessively overvalued, with concerns about stock-based compensation diluting shareholder value [1][11][13] Valuation Concerns - Michael Bur argues that Tesla's valuation has been inflated for a long time, emphasizing that the company's market cap is "ridiculously overvalued" [1][13] - The approval of Elon Musk's substantial pay package is seen as a factor that will further dilute Tesla's stock [11][13] Competitive Landscape - Tesla is facing increasing competition in the electric vehicle (EV) market, particularly from European manufacturers, leading to a loss of market share [10][19] - Sales in key European markets have significantly declined, with reports indicating a 50% drop in sales in October [19] Technological Aspirations - There is a strong belief among some analysts that Tesla is not merely a car company but is transitioning into an AI and technology-focused entity, particularly with ambitions in autonomous driving and robotics [5][20] - The potential success of Tesla's Full Self-Driving (FSD) technology could be a critical factor in maintaining its market position against competitors [20] Investor Sentiment - The investor community is polarized, with strong bullish and bearish sentiments surrounding Tesla, reflecting the company's volatile stock performance [21][22] - Analysts express skepticism about the sustainability of Tesla's growth, particularly in light of recent sales declines and competitive pressures [10][18]