Michael Burry Builds A Bear Army With Tesla “Wildly Overvalued” Call

2 weeks ago 11

Douglas A. McIntyre

Wed, December 3, 2025 astatine 7:45 AM CST 3 min read

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  • Tesla (TSLA) trades astatine 294x trailing net and 192x guardant net with a $1.43T marketplace cap.

  • Tesla’s nett income fell 36.6% year-over-year to $1.37B contempt 11.6% gross growth.

  • Michael Burry called Tesla ridiculously overvalued arsenic operating borderline compressed to 5.8%.

  • Some investors get affluent portion others conflict due to the fact that they ne'er learned determination are 2 wholly antithetic strategies to gathering wealth. Don’t marque the aforesaid mistake, learn astir some here.

Shares of Tesla Inc (NASDAQ: TSLA) slipped 1.2% to $424.98 connected December 2, 2025, arsenic retail investors rallied down Michael Burry's latest telephone that the electrical conveyance shaper is "ridiculously overvalued." The famed investor's appraisal ignited a viral treatment connected Reddit's r/investing, wherever a station titled "Michael Burry Calls Out Tesla Stating They Are 'Ridiculously Overvalued'" exploded to 1,550 upvotes and 295 comments successful nether 24 hours. The sentiment people registered astatine 12, marking "very bearish" territory arsenic traders progressively question whether Tesla's $1.43 trillion marketplace headdress tin hold.

Michael Burry Calls Out Tesla Stating They Are 'Ridiculously Overvalued'
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The Reddit treatment captured the retail investing community's increasing skepticism. One apical commenter observed: "Burry has been close earlier erstwhile everyone other was wrong. The Big Short wasn't a fluke." Another idiosyncratic added: "At 294x earnings, you're not buying a car institution - you're buying a religion. And religions don't commercialized connected fundamentals." A 3rd pointed out: "The mathematics is simple: Tesla would request to go much profitable than Apple and Google combined to warrant this valuation."

Burry's thesis finds important enactment successful Tesla's cardinal metrics. The institution trades astatine 294x trailing net and 192x guardant earnings, multiples that dwarf accepted automakers by a origin of 30 oregon more. With a price-to-sales ratio of 14.96 and EV/EBITDA astatine 108, investors are paying bonzer premiums for a concern generating conscionable 5.31% nett margins. The PEG ratio of 8.59 suggests monolithic overvaluation comparative to growth, peculiarly troubling fixed that quarterly net declined 37% year-over-year successful Q3 2025.

Reddit's investing assemblage is connecting the dots:

  • Net income fell 36.6% YoY to $1.37 cardinal contempt 11.6% gross growth

  • Operating borderline compressed to 5.8%, down from healthier levels a twelvemonth ago

  • Analyst statement terms people of $392.93 sits 9% beneath existent levels


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