Burry Shorts Tesla Again, Entering at $416
0xBroomberg
What exactly did Burry do?
Burry disclosed on his Substack that he has opened a short position (a bet that the stock price will fall) in Tesla (TSLA) at an entry price of $416.22 per share.
His words: "Glad it bounced back to this level." This means → he was waiting for Tesla to rally to a price he considered worth betting against. $416 is that line.
Has he shorted Tesla before?
Yes — more than once. In late 2020, when Tesla surged over 700% in a single year, Burry publicly called the valuation "ridiculous" and warned of an 80% drop.
In 2021, his fund Scion Asset Management disclosed a large put-option position tied to roughly 800,100 shares. Put options — in plain terms = contracts that pay off if the stock falls.
After closing that trade, he downplayed it as "just a trade." This means → he pocketed (or didn't) the gains quietly and avoided locking himself into a permanent Tesla-bear label.
What is his core argument this time?
Burry's recent criticism targets Musk's massive compensation package and ongoing equity-incentive dilution.
He called Tesla a "colossus with feet of clay." This means → in his view, Tesla looks enormous on the outside, but its foundation — actual profits and valuation support — is fragile.
He argues that Tesla's ever-evolving AI and robotics narrative turns investors into subsidizers of Musk's incentive structure, not beneficiaries of real business value. In plain terms = the story keeps getting bigger, but shareholders foot the bill while management collects.
So what does Burry actually think of Musk?
It's complicated. He criticizes Tesla's reliance on subsidies and shareholder capital funding Musk's grand vision, yet he has also called Musk "an American treasure" and compared him to Thomas Edison.
This reflects a position that is not "Musk is a fraud" but rather "Musk is a genius, yet Tesla's stock price is not worth the tag" — the person and the stock are separate bets in Burry's mind.
Re-entering at $416.22 is his clearest action signal since he resumed public criticism in late 2025 to early 2026.
Content is for reference only, not financial advice.