Famous Investor Calls *This* Tech Giant "Ridiculously Overvalued."

Rasmus Johansson 2 min
Electric car parked against the backdrop of towering skyscrapers in Busan, South Korea.
© Photo: Hyundai Motor Group / Pexels

Michael Burry, the renowned investor who inspired "The Big Short," recently reiterated his belief that Tesla's market capitalization is "ridiculously overvalued." Burry has long been a vocal skeptic of the electric vehicle giant, placing significant bets against its shares years ago. However, his firm, Scion Asset Management, has not seen positive outcomes from these positions, as Tesla's stock has continued to climb, increasing over 115 percent since 2020. This ongoing debate highlights the divide between traditional valuations and Tesla's unique position as a company valued not just as an automaker, but also for its advancements in AI, robotics, and self-driving technology.

Michael Burry, the investor famously portrayed in the movie The Big Short, recently shared his strong opinion that Tesla’s market value is "ridiculously overvalued." This isn't a new stance for Burry, who has long been skeptical of the company and its CEO, Elon Musk. He even placed a massive $530 million bet against Tesla shares years ago.

However, Burry's firm, Scion Asset Management, hasn't profited from these bearish positions. Despite his firm launching a short position in 2020 and targeting other Tesla supporters like ARK Invest, Tesla's stock has surged over 115 percent since then. His firm eventually ditched its bet against the stock by October 2021, and Scion Asset Management itself closed in May.

Burry also criticized what he called the "Elon cult," suggesting that fans shift their focus from electric cars to autonomous driving and now to robots as competition emerges in each field. This perspective clashes with how many Wall Street firms now view Tesla. It's no longer seen just as a car manufacturer but has transformed into a major player in robotics, artificial intelligence, and self-driving technology. This broader identity helps explain its unique, high valuation, setting it apart from traditional automakers.

While Tesla has faced a volatile year on the stock market, including a significant dip, it has shown strong resilience. The company’s shares have rebounded, currently trading around the $430 mark, after closing at $430.14 on Monday.