⚠️ Burry Doubles Down on Tesla Short: Is This the Warning Shot Everyone’s Ignoring?
Michael Burry — yes, that Burry from “The Big Short,” the guy famous for spotting bubbles before anyone else sees them — is targeting Tesla again. He claims Tesla’s valuation is “absurdly high,” and he’s positioned himself on the short side.
Whenever Burry speaks, Wall Street at least listens.
But the real question is: Is he early… or is he right this time?
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🧐 Why Burry Is Turning Bearish on Tesla (Again)
Tesla is facing one of the toughest macro and industry environments in years, and Burry seems to be betting on several pressure points converging:
🔻 1. EV demand is cooling globally
The once-explosive adoption curve is flattening. U.S. and EU markets are slowing faster than expected, and even China is showing signs of saturation.
🔻 2. Tesla’s margins have been crushed by endless price cuts
Gross margins have fallen far from their highs as Tesla continues to slash prices in an increasingly competitive market.
🔻 3. Chinese EV makers are aggressively eating Tesla’s share
BYD, NIO, XPeng — all producing strong alternatives at lower price points.
🔻 4. Rates remain high and financing EVs isn’t cheap
A high-rate environment has always been kryptonite for growth-heavy automakers.
🔻 5. Product roadmap has a long runway but limited near-term impact
Cybertruck ramp is slow, next-gen platforms are years away, and FSD remains unproven.
From Burry’s perspective, Tesla looks less like a hyper-growth rocket… and more like a stretched rubber band.
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⚡ But Then Again… Tesla Is Not Just Tesla
This is where the debate gets interesting.
Tesla is not valued purely as an automaker. Its valuation bakes in the probability of:
🧠 AI breakthroughs via Dojo
🚗 Full Self-Driving monetization
🤖 Robotaxis unlocking a trillion-dollar market
🔋 Energy storage growth
🦾 Robotics (Optimus) becoming a real business
🌐 Tesla Software + Services becoming recurring revenue engines
In other words, Tesla trades on future dreams — not current margins.
And historically, shorting Tesla on fundamentals has been the fastest way to get steamrolled.
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🔥 So What Happens Next? The Scenarios
🟥 Bearish Case (Burry’s stance) — High Probability, High Risk
EV slowdown worsens
Margins fall again
Deliveries disappoint
China competition intensifies
→ Tesla corrects sharply, validating the short
🟦 Bullish Case — The Tesla Effect Kicks In
FSD V12 performance surprises
AI narrative strengthens
A new catalyst (Dojo, Optimus, energy) drives a re-rating
→ Shorts get squeezed again, as always
🟨 Neutral Case — Choppy Volatility
Range-bound price action
High IV but no clear breakout
Tesla becomes a trader’s playground
All three scenarios are genuinely possible — and that is what makes Tesla one of the hardest stocks to short or hold.
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🧨 My Take: Burry Might Be Right — But Timing Could Still Kill the Trade
He has identified real structural issues.
Tesla is facing a multi-front challenge, and the valuation premium is harder to justify than ever.
But Tesla’s stock rarely falls because fundamentals weaken.
It falls only when narratives break, and right now the AI + robotics narrative remains extremely sticky.
This is why Burry’s short may be directionally correct, but dangerously early.
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📊 Your Turn — Does Burry Win This Round?
Do you believe:
🚨 Tesla is set for a sharp correction soon
⚡ Bulls will overpower the bearish narrative again
🤝 We need more data — Q4 deliveries + margins will decide the winner
Which side are you on?
#TSLA #Tesla #MichaelBurry #BigShort #EVMarket #USStocks #ValuationRisk #MarketWarning #TechStocks #Investing
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