Famed investor Michael Burry has clarified that he is not betting against Tesla stock, despite recently calling it 'ridiculously overvalued.' This comes as the electric vehicle maker released unusually weak delivery estimates for the fourth quarter and full year 2025. Burry's stance highlights the challenges of shorting the volatile stock.
Michael Burry, known for his role in 'The Big Short,' responded to a query on X on December 31, 2025, stating simply, 'I am not short.' This denial followed his Substack post earlier that week, where he wrote, 'Tesla sales falling. It is a ridiculously overvalued stock,' and cautioned that 'Shorting it has been dangerous, and the puts are expensive.'
Tesla's announcement of its own compilation of analyst delivery estimates rattled investors. The company projected 422,850 vehicles for the fourth quarter, a 15% decline from the previous year. For the full year 2025, estimates averaged about 1.6 million deliveries, marking an 8% drop from 2024 and setting up a second consecutive annual decline. Deliveries serve as Tesla's primary proxy for sales, though the metric is not precisely defined in shareholder communications.
The news contributed to Tesla's stock dipping on Monday, December 30, amid discouraging supply updates. Shares had reached a record closing price of $489.88 on December 16 but were trading around $453 per share by Wednesday afternoon. Burry had previously taken a $530 million short position against Tesla in May 2021, as revealed in a 13F filing, but closed it months later.
Other prominent short sellers share similar caution. Danny Moses, another 'Big Short' figure, closed his Tesla position in 2024 and said he would need to see earnings growth decelerate further before considering a bet against mega-cap tech stocks. Porter Collins, a partner, described Tesla as a 'meme stock' driven by retail speculation and admiration for Elon Musk.
Tesla faces pressures from slowing sales, intensifying competition—particularly from Chinese EV makers—and volatility tied to Musk's political activities. Despite this, the stock's valuation continues to hinge on future prospects like robotaxis and autonomy.
