Michael Burry Denies Reports That Said He Was Short Tesla

• Burry had said in his Substack post that Tesla’s market capitalization has been overvalued for a long time.
• He also added that Tesla dilutes its shareholders at a rate of 3.6% per year, with no buybacks.
• “The Big Short” legend stated that Tesla CEO Elon Musk’s $1 trillion pay package will result in continued dilution of the company’s shareholders.

Michael Burry on Tuesday denied that he had taken a short bet on Tesla Inc. (TSLA) stock and reposted his original take on the company’s valuation.

“The Big Short” legend issued the clarification in a post on X, stating that his older short bet against Tesla was worth $5 million, not $500 million.

“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” stated Burry, according to an excerpt from his recent article on Substack.

Tesla shares were down more than 1% in Tuesday morning’s trade. Retail sentiment on Stocktwits around the company trended in the ‘bullish’ territory at the time of writing.

Burry On Shareholder Dilution

Burry stated in his Substack post that Tesla dilutes its shareholders at a rate of 3.6% per year, with no buybacks. He also added that Tesla CEO Elon Musk’s $1 trillion pay package will continue to dilute the company’s shareholders.

He also noted that shareholder dilution is worse for Palantir, at an annual rate of 4.6%, despite buybacks.

“Palantir has the distinction of being the first billionaire:revenue ratio greater than one that I have seen. Five billionaires due to stock ownership, and less than four billion in annual revenue,” he said in the Substack post.

Pivots By ‘Elon Cult’

Burry also called out the pivots by “Elon cult,” which went from being committed to EVs, to autonomous driving, and now robots.

“As an aside, 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,” said Burry.

Tesla’s Optimus humanoid robot is currently under development. The company describes it as a general-purpose bipedal robot capable of performing unsafe, repetitive, or boring tasks.

After being initially announced in 2021, Musk said in a post on X that the humanoid robot would be used internally by the EV giant by 2025, with production for other companies expected to begin in 2026.

TSLA stock is up 5% year-to-date and 19% over the past 12 months.

Also See: Michael Burry Warns Of ‘Number Of Bad Years’ For US Stock Market: ‘I Think The Whole Thing’s Just Going To Come Down’

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