"Big Short" Investor Michael Burry Thinks Tesla Stock Is Overvalued. Is He Right?

Shares of Tesla (NASDAQ: TSLA) are back in the spotlight after "Big Short" investor Michael Burry used his new Cassandra Unchained newsletter to call the stock "ridiculously overvalued." Burry, who got his "Big Short" investor nickname from shorting the U.S. housing market during the supbrime mortgage crisis and the subsequent movie he was depicted in, argues that the electric-car maker's lofty market value and Tesla CEO Elon Musk's $1 trillion pay package expose shareholders to ongoing dilution in a company that does not repurchase its stock.Meanwhile, the electric-vehicle maker and energy-storage company is growing more slowly than it used to. And its profit margins are eroding as it relies on price cuts and shifts shareholders' focus away from its core business to newer initiatives, such as an autonomous ride-sharing network and humanoid robots. Revenue in 2024 barely grew compared with 2023, and more recent quarterly results show only modest top-line gains while operating income is falling.All this to say: Burry has a point.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool