Famed investor Michael Burry, known for his successful bet against the housing market in 2008, has set his sights on Elon Musk’s Tesla, calling the electric vehicle maker “ridiculously overvalued” in a recent blog post. Burry has emerged as a sharp critic of big tech, targeting Nvidia as well as Google and Meta with recent articles.
Business Insider reports that in a scathing critique published on his Substack Sunday evening, Michael Burry, the investor immortalized in the movie The Big Short, took aim at Elon Musk’s Tesla, claiming that the company’s market capitalization has been grossly inflated for a considerable time. Burry’s comments come amidst a series of bets he has disclosed against other tech giants, including Nvidia and Palantir.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry wrote. He also expressed concerns about the potential dilution of the company’s shares due to Musk’s $1 trillion pay package.
Burry didn’t stop there, taking a swipe at Musk’s loyal following. “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,” he quipped.
This is not the first time Burry has targeted Tesla. In 2021, he placed a bet against $530 million worth of the company’s shares, only to exit the position a few months later, calling it “just a trade.”
Burry’s criticism of Tesla is part of a larger pattern of skepticism towards the current AI boom, which he believes to be a bubble. Last month, he disclosed bets against Nvidia and Palantir, engaging in a public war of words with both companies. In a surprising move, Burry deregistered his hedge fund in November and launched his Substack last week.
Burry has also accused major AI players like Google and Meta of inflating their earnings using accounting tricks:
“Understating depreciation by extending useful life of assets artificially boosts earnings – one of the more common frauds of the modern era,” Burry wrote in his post. He adds that “Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done. By my estimates they will understate depreciation by $176 billion 2026-2028.”
Burry estimates that from 2026 through 2028, this accounting maneuver would understate depreciation by approximately $176 billion, inflating reported earnings across the industry. He specifically called out Oracle and Mark Zuckerberg’s Meta, stating that their profits could be overstated by roughly 27 percent and 21 percent, respectively, by 2028.
Read more at Business Insider here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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