Michael Burry is betting against Tesla, says it's overhyped

Business Dec 02, 2025

Michael Burry—the investor who predicted the 2008 housing crash—is now shorting Tesla.
He thinks the company's stock is "ridiculously overvalued" and isn't a fan of Elon Musk's proposed $1 trillion pay package either, sharing his thoughts on Substack, as cited by Fortune.

Why Burry (and others) are worried

Burry points out that Tesla's stock-based pay plan dilutes shareholder value by about 3.6% every year, with no buybacks to balance things out.
Institutions are concerned about Musk's massive compensation and are assessing the company's concentration and key-person risks.
Even Norges Bank (the world's biggest wealth fund) has pushed back on the plan.
Despite all this buzz, Tesla shares are only up 6.5% this year—lagging way behind the Nasdaq-100's 21% jump.