Investor Michael Burry is raising concerns regarding Tesla Inc.’s (NASDAQ:TSLA) valuations, especially considering its decelerating sales momentum.



<h2>Tesla Is ‘Ridiculously’ Overvalued</h2>



On Tuesday, in a post on X, Burry said, “Tesla is ridiculously overvalued,” after the company shared consensus estimates of its fourth-quarter vehicle sales on Monday, with projected figures coming in below investor expectations.



The company compiled estimates from across several prominent sell-side analysts, arriving at a broad consensus of 422,850 units for the current quarter, which is 14.93% below the prior quarter, and down 15% compared to the same period last year.



See Also: Tesla’s Real Value Is In Physical AI – Not Car Deliveries, Munster Warns



As a result, Tesla is headed for its second consecutive drop in annual vehicle sales, with average estimates at 1,640,752 units, down 8.8%, compared to just under 1.8 million global deliveries in 2024.



Yet, the company remains the most valuable automaker in the world, with a market capitalization of $1.53 trillion, while trading at 204 times forward earnings, which is many times over the industry’s average price-to-earnings ratio of 17.47.



Burry, who rose to fame for betting against the housing market ahead of the 2008 financial crisis, has been a vocal critic of Tesla’s valuation in recent weeks.



He made the same statement in his newsletter earlier this month, while also highlighting CEO Elon Musk’s trillion-dollar pay package, which he warned would lead to stock dilution. He said that the company dilutes its shareholders by 3.6% annually, without any corresponding stock buybacks.



“As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up,” Burry said. He, however, noted that he does not have a short position against the company right now.



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<blockquote>Tesla is ridiculously overvalued. pic.twitter.com/GIEmC8744Z— Cassandra Unchained (@michaeljburry) December 30, 2025</blockquote>
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<h2>This Is ‘Very Unusual’ For Tesla</h2>



Fund manager and prominent Tesla analyst Gary Black said in a post on X that it was “very unusual” for Tesla to issue a press release with the quarterly sell-side consensus estimates. 



“Obviously, someone at TSLA wanted the IR-derived consensus to be distributed as widely as possible,” he said, while adding that he expects the company’s fourth-quarter deliveries to be in the “420K range than the 445K range.”



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>This is highly unusual for $TSLA to send out a press release with quarterly consensus delivery estimates. Interestingly, Bloomberg consensus, which tends to be stale since it is depends on analysts updating their estimates in a timely manner, shows a 4Q delivery consensus of…— Gary Black (@garyblack00) December 30, 2025</blockquote>
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Tesla shares were down 1.17% on Tuesday, closing at $454.24, and are down 0.35% overnight. The stock scores high on Momentum and Quality in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.



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Photo Courtesy: Tada Images on Shutterstock.com



Read More: 



<ul>
<li>Tesla CEO Elon Musk Added More To His Wealth In 2025 Than Google Co-Founders Larry Page, Sergey Brin Combined</li>
</ul>

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Investor Michael Burry has expressed concerns about Tesla Inc.'s (NASDAQ: TSLA) valuation, labeling it as 'ridiculously overvalued' due to declining sales momentum. Following the company's lower-than-expected fourth-quarter vehicle sales estimates, Burry highlighted that Tesla is facing its second consecutive annual sales drop. Despite its high market capitalization of $1.53 trillion and a forward earnings ratio significantly above the industry average, Burry criticized CEO Elon Musk's compensation package and the company's shareholder dilution. Tesla shares fell 1.17% to $454.24 amid these concerns.

- Investor Michael Burry has expressed concerns that Tesla Inc. is "ridiculously overvalued," citing lower-than-expected vehicle sales estimates for the fourth quarter, projected at 422,850 units.  
- This decline represents a 14.93% decrease from the previous quarter and a 15% drop from the same period last year, marking a potential second consecutive annual sales decline for Tesla.  
- Despite this, Tesla maintains its position as the world's most valuable automaker with a market capitalization of $1.53 trillion, trading at 204 times forward earnings, significantly higher than the industry average of 17.47.

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Michael Burry Says Tesla Is 'Ridiculously Overvalued' After Earlier Warning About The Elon 'Cult'