Michael Burry slams Tesla valuation, warns of 'ridiculous' dilution
10 days ago
- #Tesla
- #Stock Market
- #Michael Burry
- Michael Burry criticizes Tesla's stock-based compensation (SBC) and high dilution rate.
- Burry highlights Tesla's 3.6% annual shareholder dilution with no buybacks, comparing it to Amazon (1.3%) and Palantir (4.6%).
- Elon Musk's massive compensation packages, including a potential $1 trillion pay package, are seen as future value destruction for shareholders.
- Burry critiques Tesla's shifting narrative from electric cars to autonomous driving and now robotics, calling it a tactic to keep investors engaged.
- Tesla's stock is deemed overvalued with a P/E ratio of 295, despite falling earnings and irrational investor behavior.
- Burry's analysis is well-researched, but shorting Tesla remains risky due to market irrationality and Musk's cult-like following.