Michael Burry, the investor renowned for his prescient bet against the U.S. housing market before the 2008 financial crisis, has publicly stated he is not shorting shares of electric vehicle giant Tesla Inc. This clarification comes just weeks after he labeled the company "ridiculously overvalued," sparking widespread speculation about his market position.
Clarification on Social Media
On December 31, 2025, Burry directly addressed the speculation on the social media platform X. In response to a user query about whether he would bet against Tesla, the Scion Asset Management founder posted a succinct reply: "I am not short." This statement serves to distance his critical opinion from an active short-selling position, a tactic for which he is famously known.
Context of Criticism and Tesla's Performance
Burry's denial follows his earlier critique of Tesla's valuation earlier in December. His comments arrive at a pivotal moment for the automaker. After a significant slump in April 2025—driven by investor concerns over CEO Elon Musk's political activities and commitment—Tesla's stock has staged a remarkable recovery and is trading near all-time highs.
However, this strong market performance contrasts with emerging data on the company's sales trajectory. On Monday, December 30, Tesla took the unusual step of publishing a series of internal sales estimates. These figures suggest the outlook for vehicle deliveries may be softer than many investors had anticipated.
A Shifting Sales Forecast
The newly released estimates indicate Tesla is on track for its second consecutive annual decline in vehicle sales. The company compiled an average estimate for 1.6 million deliveries in 2025, representing a drop of more than eight percent from the previous year. Furthermore, Tesla's own projections for the next three years are also lower than the average estimates compiled by Bloomberg analysts, signaling a more cautious internal view of near-term growth.
This backdrop of a soaring stock price alongside a moderating sales forecast creates a complex picture for investors. Burry's latest clarification removes one potential market overhang—a high-profile short bet—but leaves his fundamental critique of the company's valuation squarely on the table. The situation underscores the ongoing debate about Tesla's market value relative to its operational performance and future growth prospects in an increasingly competitive electric vehicle landscape.
