Hyperliquid News Today: Burry Warns Tesla's Valuation Defies Fundamentals Amid Tech Hype

Michael Burry, the investor who gained notoriety for predicting the 2008 housing market collapse, has reignited his bearish stance against Tesla Inc. (TSLA), calling the electric vehicle maker "ridiculously overvalued" in a recent blog post. The "Big Short" investor cited concerns over Elon Musk's record-breaking pay package and ongoing shareholder dilution, which he argues undermine the company's long-term value. Tesla's stock, trading at approximately 209 times its forward earnings as of its last close, far exceeds its five-year average of 94 and dwarfs the S&P 500's forward P/E ratio of 22 according to analysis.

Burry's critique centers on Tesla's market capitalization, which he claims has been overinflated for years. He estimates the company dilutes shareholders by 3.6% annually through equity issuance without offsetting buybacks, a trend he warns will accelerate with Musk's newly approved $1 trillion stock compensation package. This pay structure, tied to ambitious production milestones and a long-term valuation target of $8.5 trillion, could further erode existing shareholders' stakes by incentivizing continuous equity issuance. "The Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots – until competition shows up," Burry wrote, highlighting what he sees as a pattern of shifting hype narratives.

The investor's remarks align with broader skepticism about the current valuation of tech and AI-driven companies. Burry has recently criticized firms like Nvidia and Palantir Technologies, arguing that aggressive accounting practices and circular deal-making are inflating profits and masking underlying risks. His latest Substack, "Cassandra Unchained," positions Tesla within this broader critique, suggesting the company's valuation is built on speculative assumptions rather than fundamentals.

Tesla, however, remains a dominant force in the EV market, holding 41% of the U.S. market share despite rising competition. The stock has gained 14% in 2025, buoyed by optimism around its robotaxi and Optimus robot initiatives. Musk has dismissed critics, predicting Tesla will eventually become the world's most valuable company. Yet Burry's return to shorting Tesla - revisiting a position he previously held in 2021 - signals growing unease among investors about the sustainability of the automaker's valuation amid intensifying competition and regulatory scrutiny.

The debate underscores a broader tension in the market: the clash between high-growth tech narratives and traditional valuation metrics. As AI and EV sectors continue to attract speculative capital, Burry's warnings serve as a reminder of the risks inherent in valuing companies based on future potential rather than current profitability. Whether Tesla can justify its premium valuation amid these challenges remains a key question for investors.