Michael Burry, an investor famous for successfully betting on the 2008 financial crisis, has repeatedly warned in recent years that artificial intelligence (AI) related themes are showing signs of a bubble, and has also long held a highly reserved attitude towards Tesla's valuation. However, Burry recently made a rare personal statement, saying that although he still believes Tesla is severely overvalued, he has not chosen to actually short it, mainly because the risks and costs of short itself are too high to be attractive.
Tesla's Q4 deliveries fell short of expectations; BYD became the world's largest electric vehicle manufacturer.
Burry points out that from a fundamental perspective, Tesla is facing multiple pressures. Its global electric vehicle sales have declined, market competition has intensified, price wars are eroding profit margins, and growth is slowing, resulting in a significant gap between its current stock price and its actual operating performance. In his view, Tesla's overall valuation is severely deviated from its fundamentals.
According to the latest official data from Tesla, Tesla's global deliveries in Q4 2025 were approximately 418,227 vehicles, a year-on-year decrease of about 16%, and lower than the market's original expectation of approximately 426,000 vehicles. While Tesla's delivery growth is slowing, BYD's total deliveries for 2025 are expected to reach approximately 4.6 million vehicles, which is already considered to have officially overtaken Tesla as the world's largest electric vehicle manufacturer.
Michael Burry, a major short seller, explains why he is bearish on Tesla but doesn't short it.
But when netizens asked him if he would short Tesla at this price, Michael Burry stated directly : I did not short it.
Burry points out the practical limitations of derivatives. Whether it's buying put options or betting on a stock price decline through other structured methods, the premium costs in the current market are quite high, and the time value of these options diminishes rapidly, making them unfriendly to investors. He bluntly states that for most people, there aren't many things they can actually do with an asset like Tesla.
Under these circumstances, Burry believes that the only relatively direct and risk-controlled option may be not to hold the stock, or to sell the stock if one already holds it, rather than trying to bet on a decline in stock price with high leverage.
This article, "Tesla's Q4 deliveries plummeted by 16%, BYD overtook it! Michael Burry explains why he doesn't short, " first appeared on ABMedia .
