This article first appeared on GuruFocus.
Tesla, Inc. (NASDAQ:TSLA) was little changed on early Tuesday trading as renewed debate over its valuation picked up after investor Michael Burry (Trades, Portfolio) slammed the company as ridiculously overvalued, according to a Substack post.
Burry said CEO Elon Musk’s recently approved pay package, which could award shares tied to long-term targets, would add to shareholder dilution and underpinned his critique.
The comments arrive as Tesla’s market value sits around $1.43 trillion, putting the EV maker among the world’s largest companies by market cap.
Burry reiterated concerns about high price-to-earnings multiples and compared current tech enthusiasm to earlier froths, noting heavy investor optimism across AI-linked names.
Market watchers said Burry’s post may intensify scrutiny but stopped short of predicting immediate stock moves; Tesla’s shares have outperformed many peers this year and remain closely watched by traders.
Tesla did not respond to requests for comment. Analysts say the debate highlights a broader tug-of-war between growth expectations and traditional valuation metrics as investors head into year-end.
Investors are likely to focus on regular trading on Tuesday following Burry’s comments.
![Tesla's entry-level Model 3 sedan [SCREEN CAPTURE]](https://www.evshift.com/wp-content/uploads/2026/01/1768620872_0fecd24b-2e4f-40e4-acb9-19e23f494e3f-770x499.jpg "Tesla’s Standard Model 3 sedan priced in 30 million won range after gov’t subsidies")
