Elon Musk’s Tesla under scrutiny: Michael Burry criticises company’s performance

Elon Musk’s Tesla is facing a fresh controversy after renowned American investor Michael Burry criticised the electric vehicle maker, calling it “ridiculously overvalued.” 

The remarks arrived only days after Burry expressed wider concerns about the booming AI market, suggesting investors are overlooking deeper risks.

Burry argued that Tesla has consistently diluted its shareholders, claiming their stakes drop by nearly 3.6% annually due to continuous stock issuance and the lack of buybacks. 

He added that Musk’s massive $1 trillion compensation plan will intensify this dilution, especially as the company pushes toward its ambitious long-term performance targets.

For those unversed, Tesla shareholders recently approved the unprecedented pay package, which grants Musk the potential to secure about 12% of the company’s stock if it reaches an $8.5 trillion valuation and meets several operational milestones. 

The plan comes after a Delaware judge struck down Musk’s earlier $56 billion package, a ruling still under litigation.

As of this week, Tesla shares hovered around $427–$430, slightly lower than the prior session but still reflecting strong year-over-year gains. 

Burry also broadened his warnings to technology giants like Nvidia and Palantir, accusing parts of the sector of relying on aggressive accounting.

Notably, Musk has yet to comment directly, but the renewed scrutiny places Tesla back at the centre of Wall Street’s most heated debates.