Michael Burry clarifies Tesla position amid valuation debate

Renowned investor Michael Burry moved to correct market speculation this week after renewed attention on his views about Tesla’s valuation.

The Scion Asset Management founder said he is not betting against the electric vehicle maker, despite having described the stock as “ridiculously overvalued.”

The clarification came in response to questions on social media, as investors assessed Tesla’s recent disclosures, shifting delivery expectations, and a volatile share price trajectory in 2025.

Burry’s comments also followed his broader criticism of accounting practices tied to the AI boom, which has kept his market calls in focus well beyond Tesla alone.

Social media clarification

On Wednesday, Burry addressed questions directly on X after a user asked whether he was shorting Tesla’s shares. He replied that he “was not short.”

The statement followed a separate post in which he characterised Tesla’s valuation in stark terms, prompting assumptions that he had taken a bearish position on the stock.

Burry also reiterated the same view earlier this month in his paid Substack newsletter, where he shared the assessment with subscribers.

The comments revived interest in how closely his valuation critiques align with active trading positions, an issue he has previously sought to separate.

By responding publicly, Burry drew a clear distinction between expressing a view on valuation and placing a short bet in the market.

Valuation views and recent bets

The investor, best known to the public through The Big Short, has recently returned to headlines with criticism of the technology sector.

He has argued that several large US companies are using aggressive accounting methods to amplify reported profits linked to the AI boom.

That broader stance has framed how investors interpret his remarks on individual companies.

Tesla delivery expectations

Tesla’s latest disclosures suggested a softer trajectory for vehicle deliveries.

On Monday, the company compiled an average estimate pointing to about 1.6 million deliveries in 2025.

That figure implies a decline of roughly 8% from 2024 and would mark a second consecutive annual drop in vehicle sales.

Such guidance has stood out because Tesla rarely publishes its own delivery estimates in this way.

The move has been closely watched by investors weighing near-term fundamentals against longer-term ambitions in electric vehicles, autonomy, and AI-related initiatives.

The stock’s path this year has been uneven. Tesla shares recently reached an all-time closing high of $489.88 in the latter part of the year, after the company experienced a sharp sell-off in the first quarter.

That downturn coincided with intensifying competition from Chinese electric vehicle manufacturers and reputational challenges linked to the political rhetoric of Elon Musk.

Despite the volatility, Tesla shares were little changed in premarket trade on Wednesday. The stock has gained more than 12.5% so far in 2025.

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