Michael Burry Says He Holds No Short Position Against Tesla After Calling Stock Overvalued

Renowned investor Michael Burry stated on Wednesday that he is not betting against Tesla Inc., clarifying his current stance after characterizing the electric-vehicle manufacturer’s shares as “ridiculously overvalued.” The remark was made in response to a question on the social-media platform X, where the founder of Scion Asset Management wrote, “I am not short,” addressing speculation about a potential bearish wager on the automaker.

Burry’s denial followed separate comments earlier in the week, published on his newly launched paid Substack, in which he reiterated his view that Tesla’s market valuation does not align with its fundamentals. The investor, widely recognized for predicting the collapse of the U.S. housing market ahead of the 2008 financial crisis—a story that became the basis for the 2015 film “The Big Short”—has periodically voiced concerns about elevated equity prices in various sectors.

The latest clarification comes as Tesla confronts a series of headwinds that have contributed to heightened scrutiny of its growth prospects. On Monday, the company released a compilation of analysts’ estimates projecting approximately 1.6 million vehicle deliveries in 2025, about 8 percent below the expected total for 2024. If realized, that figure would mark the second consecutive annual decline in shipments for the company led by Chief Executive Officer Elon Musk.

Investors have reacted unevenly to the shifting outlook. Tesla shares, which reached an all-time closing high of $489.88 earlier this year, suffered a sharp pullback during the first quarter amid intensifying competition—particularly from Chinese manufacturers—and public backlash tied to Musk’s political commentary. As of late-morning trading on Wednesday, the stock was modestly lower on the session yet remained up more than 12.5 percent for 2025.

Beyond his comments on Tesla, Burry recently drew attention for disclosing a separate bearish position against a basket of large U.S. technology companies. In that instance, he argued that several firms had used aggressive accounting practices to embellish earnings tied to the ongoing boom in artificial-intelligence applications—an assertion that sparked debate among market observers. Though details of the trade were not publicly released, the move echoed past instances in which Burry wagered against what he perceived as unsustainable trends.

His skepticism toward Tesla dates back several years. In 2020, the investor revealed a short position in the automaker, citing concerns about valuation. He later closed that trade, explaining in interviews that the position was never intended as a long-term bet. Wednesday’s statement indicates that, at least for now, Burry has no active short exposure to the company’s shares.

While Tesla’s recent delivery projections have attracted attention, analysts remain divided on the outlook for demand. Some expect new models and production ramp-ups to revive growth over the medium term, while others point to mounting competition and potential pricing pressure as obstacles. The International Energy Agency, in its Global EV Outlook 2024, said worldwide electric-vehicle sales should continue expanding, but it highlighted regional disparities that could affect individual manufacturers.

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Burry’s influence on market sentiment stems from his track record during the subprime-mortgage crisis, when his early recognition of systemic risk brought him both profits and notoriety. Following the events dramatized in “The Big Short,” he has managed a relatively low profile, occasionally resurfacing with critical observations on sectors ranging from cryptocurrencies to passive investing.

For Tesla, the immediate focus remains on stabilizing deliveries and navigating regulatory environments in key markets. The company has pursued price cuts in several regions to defend market share, a strategy that analysts say could weigh on margins if unit growth fails to offset lower average selling prices. At the same time, Tesla continues to invest in new facilities and technologies, including its highly anticipated Cybertruck and advances in autonomous driving software.

Market participants will closely monitor upcoming quarterly results for signs of whether the firm can meet or exceed the revised delivery consensus. Any shortfall could reinforce concerns expressed by skeptics like Burry, while positive surprises could bolster confidence among long-term shareholders.

With Burry confirming that he currently holds no short position, speculation surrounding a potential high-profile bet against the automaker appears settled for now. Nevertheless, his description of Tesla as “ridiculously overvalued” underscores the polarized opinions that continue to surround one of the market’s most closely watched companies.

Crédito da imagem: Jim Spellman | WireImage