Michael Burry Targets Tesla as New Short, Calls Stock 'Ridiculously Overvalued'

Investor Michael Burry has once again drawn attention for his bearish stance, this time reportedly setting his sights on Tesla. According to market reports, Burry described the electric-vehicle maker as "ridiculously overvalued," signaling a fresh short position that has stirred debate among investors and analysts. The move adds to a pattern of outspoken bets from the investor known for his role in the 2008 housing market short.

Burry's critique centers on valuation metrics and future growth assumptions. With Tesla's market capitalization and pricing multiples drawing scrutiny, proponents of the short thesis argue that optimistic revenue growth, high profit-margin expectations, and continued premium valuations are already priced into the stock. Skeptics of the short note Tesla's leading market share in EVs, brand strength, and potential for new revenue streams, which could justify higher multiples.

For portfolio managers and retail investors, the report serves as a reminder to reassess risk tolerance and position sizing. Short positions, particularly against large-cap growth names, carry unique risks: unlimited downside on borrow costs, timing challenges, and volatility that can amplify losses if market sentiment shifts. Investors tracking Burry's move will likely examine liquidity, options flows, and institutional positioning to gauge sentiment and potential price impact.

Market commentators also emphasize the broader implications for tech and EV sectors. If a well-known value-focused investor targets Tesla, it can prompt renewed discussion about the gap between fundamentals and market expectations across similar high-growth names. That conversation may influence analyst revisions, hedge fund strategies, and retail trading patterns in the weeks ahead.

As always, reports regarding individual investment positions should be treated cautiously. Confirmation from regulatory filings or direct statements can provide clarity, but investors should conduct their own analysis or consult financial advisors before adjusting portfolios. Burry's reported short on Tesla has reintroduced a vigorous debate over valuation, risk, and the durability of the EV leader's premium.