Michael Burry said he is not short Tesla (TSLA) shares on Wednesday, clarifying his position after calling the electric vehicle maker “ridiculously overvalued.” The denial from the “Big Short” investor sparked renewed debate about Tesla’s premium valuation heading into 2025 earnings season.
Key Takeaways
- Burry denies shorting Tesla despite valuation concerns
- Investor called TSLA “ridiculously overvalued” on Tuesday
- Clarification comes amid Tesla earnings expectations debate
Market Reaction & Context
Tesla shares have gained more than 60% in 2024, significantly outpacing the broader S&P 500’s roughly 24% return 1. The stock’s premium valuation has drawn scrutiny from value-oriented investors like Burry, who gained fame for predicting the 2008 housing crisis.
When asked directly on social media platform X whether he would short Tesla, Burry replied simply: “I am not short” 2. The response came after a user questioned his stance following Tuesday’s comments about Tesla’s valuation.
Valuation Concerns Persist
Despite not holding a short position, Burry maintained his criticism of Tesla’s current market price. The Scion Asset Management founder has previously expressed skepticism about high-growth technology stocks during periods of elevated valuations 3.
Tesla is expected to report a double-digit decline in vehicle deliveries for 2024, marking the first annual decrease in the company’s history 4. The anticipated delivery shortfall has raised questions about whether the stock’s premium reflects operational realities.
Investor Positioning
Burry’s clarification highlights the distinction between viewing a stock as overvalued and actively betting against it. Short selling requires borrowing shares and selling them with the expectation of buying them back at lower prices, exposing investors to unlimited loss potential.
The investor’s recent focus has shifted toward other market opportunities, according to regulatory filings 5. Burry has historically avoided sustained short positions in individual growth stocks, preferring broader market hedges during periods of concern.
Market Outlook
Tesla faces mounting challenges including increased electric vehicle competition, slowing growth in key markets, and regulatory uncertainty around autonomous driving initiatives. The company’s fourth-quarter earnings, expected in late January, will provide clarity on demand trends and 2025 guidance.
Analysts remain divided on Tesla’s prospects, with price targets ranging from 85 to 515 per share. The wide valuation range reflects uncertainty about the company’s transition from a pure-play EV manufacturer to a broader technology and energy company.
Not investment advice. For informational purposes only.
References
1“‘Big Short’ investor Michael Burry says he’s not shorting Tesla”. CNBC. Retrieved December 31, 2025.
2“Famed Investor Michael Burry Says He’s Not Short Tesla Shares”. Yahoo Finance. Retrieved December 31, 2025.
3“Michael Burry says he’s not short Tesla”. Seeking Alpha. Retrieved December 31, 2025.
4“Michael Burry, “The Big Short” investor who called Tesla ridiculously overvalued”. Sherwood News. Retrieved December 31, 2025.
5“Michael Burry Denies Shorting Tesla (TSLA) Amid Overvaluation Claims”. GuruFocus. Retrieved December 31, 2025.