- Famed investor Michael Burry disclosed a short position in Tesla at $416.22 ahead of the company’s Q2 delivery report.
- Future Fund’s Gary Black projects Tesla will deliver 410,000 vehicles in Q2, beating Wall Street consensus, but cites valuation concerns.
- Tesla’s short interest has risen to around 2% of its float, the highest level in approximately five months.
- Burry’s bearish bet extends beyond Tesla to other major market winners, including NVIDIA, Applied Materials, Caterpillar, and SOXX.
Michael Burry, the money manager famous for his mortgage crisis bet, has taken a fresh bearish stance against Tesla, shorting the stock at $416.22 just before its second-quarter delivery update. His move, revealed in a trading post, is part of a broader short trade targeting several major market winners.
Burry stated he was “happy it jumped back to this level” to initiate the short. However, this contrarian play comes as other analysts anticipate a strong quarterly report from the electric vehicle maker.
Future Fund Managing Partner Gary Black said on X he expects Tesla to deliver about 410,000 vehicles, above the Wall Street consensus. He suggested higher gas prices may have helped demand during the quarter.
Consequently, Black remains cautious on Tesla’s long-term outlook due to falling earnings estimates and fierce competition in autonomy. His fund holds no position, citing an “extended valuation” with a 2026 price-to-earnings ratio of 200x.
Meanwhile, Tesla’s short interest has climbed to around 2% of its float, according to Koyfin data. This marks the highest level in about five months, reigniting focus on bearish bets against the company.
Burry has previously criticized Tesla, labeling it part of a “Lord of the Tragic Tier” where stock-based compensation exceeds net income. He also argued that CEO Elon Musk‘s large compensation package distorts broader index earnings.
Retail trader sentiment on platforms like Stocktwits remained bullish with high message volume. One user defiantly predicted the stock would reach $450, while another warned Burry’s short could push prices below $400.
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