Tesla(US:TSLA) Benzinga·2025-12-31 03:55Core Viewpoint - Investor Michael Burry has expressed concerns about Tesla Inc.'s valuations, particularly in light of its declining sales momentum [1][2]. Group 1: Sales Performance - Tesla's projected fourth-quarter vehicle sales are estimated at 422,850 units, which is 14.93% lower than the previous quarter and down 15% compared to the same period last year [2]. - The company is on track for its second consecutive annual decline in vehicle sales, with average estimates at 1,640,752 units, reflecting an 8.8% decrease from just under 1.8 million global deliveries in 2024 [3]. Group 2: Valuation Concerns - Despite its declining sales, Tesla remains the most valuable automaker globally, with a market capitalization of $1.53 trillion, trading at 204 times forward earnings, significantly higher than the industry average price-to-earnings ratio of 17.47 [4]. - Burry has criticized Tesla's valuation, highlighting CEO Elon Musk's trillion-dollar pay package, which he believes will lead to stock dilution, estimating a 3.6% annual dilution without corresponding stock buybacks [5]. Group 3: Market Reactions - Tesla shares fell by 1.17% on Tuesday, closing at $454.24, and experienced a further decline of 0.35% overnight [7]. - Prominent Tesla analyst Gary Black noted it was "very unusual" for Tesla to issue a press release with quarterly sell-side consensus estimates, suggesting that someone at the company wanted the information widely distributed [7].