Michael Burry targets Tesla over its robotics and autonomy ambitions, arguing the valuation leaves little room for error

Michael Burry, the hedge-fund investor popularized by the film The Big Short, is drawing fresh attention from Tesla bulls and bears after a media report said he has opened a new short position against the electric-vehicle maker. The discussion frames Tesla as a stock where upside momentum may be real, but where the downside could be abrupt if products aimed at autonomy and robotics fall short of lofty expectations.

According to the reporting, Burry’s bearish positioning is aimed at Tesla shares at above $416 per share. The piece also underscores that Tesla has repeatedly been a difficult name to short in past years, while portraying Burry’s new stance as a bet that the market’s pricing of near-term breakthroughs may not be sustainable.

The argument for the short is tied to Tesla’s roadmap beyond cars. The report points to a recent spike tied to Tesla’s Full Self-Driving (FSD) v14 Lite release, saying the reaction may have been “overdone.” FSD is Tesla’s driver-assistance and autonomy software stack, and v14 Lite is presented in the article as a more streamlined version within that release line.

Beyond software, the report points to Tesla’s robotics ambitions, including Optimus, Tesla’s humanoid robot program, and other internal efforts described as Terafab and custom silicon. It argues that even if Tesla’s long-term vision has convinced patient investors, the current valuation may make the stock vulnerable to any delay, disappointment, or slower-than-expected commercialization. The article also notes that at “heightened valuations,” there is “no room for error,” explicitly contrasting optimistic narratives with execution risk.

The bearish case is also presented in terms of timing and market mechanics. The report cites factors that can amplify downside in richly valued growth stocks, including delays in major projects such as Cybercab and Optimus. It also points to rising interest rates and share dilution as potential tailwinds for a short thesis, though it does not provide new, company-specific figures in the cited excerpts.

Several parts of the reporting emphasize the scale of the valuation argument. One section characterizes Tesla’s trailing price-to-earnings (P/E) multiple as roughly 300 times, arguing that such a multiple leaves the company exposed to a less-than-perfect execution path. P/E is a valuation measure comparing a company’s stock price to its earnings; a high trailing P/E generally implies the market expects stronger future earnings growth to justify the current price.

Tesla’s stock is also portrayed as benefiting from a strong investor following, with the article describing Tesla fans as “patient” and suggesting that belief in Elon Musk’s long-term direction has historically cushioned the stock through setbacks. It also raises the question of whether Musk’s stewardship across Tesla and Space Exploration Technologies (SpaceX) could be perceived as creating value that extends beyond what investors typically ascribe to automakers.

Still, the report does not provide verifiable details about the size of any position, the exact timing of entry, or whether Burry’s strategy uses options, swaps, or another instrument. It also does not cite Tesla disclosures or regulatory filings from the company itself. As a result, readers are left with an interpretive argument centered on valuation, execution risk, and product timelines, rather than a fully sourced, trade-by-trade breakdown.

Going forward, investors are likely to watch whether Tesla can convert its autonomy messaging and robotics milestones into measurable commercial progress. The report’s central risk theme is that the market may be pricing success too quickly, making any stumble or delay more damaging than it would be for a lower-expectations stock. Any additional clarity around FSD release impact, robotics development schedules, and funding or dilution dynamics could determine whether the bearish thesis gains traction or fades.