Michael Burry, the investor famously depicted in "The Big Short," disclosed on June 30, 2026, that he has placed a bearish bet against Elon Musk's Tesla (TSLA) at a price of $416.22. He stated he was pleased the stock had climbed back to this level, allowing him to initiate the short. This move comes as Tesla's stock experienced an 11% weekly climb to $420.60, after being down 3.99% year-to-date. Burry did not reveal the size or additional specifics of his short position against the electric vehicle manufacturer.
Beyond Tesla, Burry has also shorted chipmaker Nvidia (NVDA) at $198.09, criticizing the semiconductor market as a "beginning of the end" due to historically high valuations and a price-to-sales ratio of over 16x for the Philadelphia Semiconductor Index, excluding Nvidia. He also shorted Caterpillar Inc. (CAT) at $1060.98, Palantir Technologies Inc. (PLTR), and the iShares Semiconductor ETF (SOXX) at $198.09. Burry highlighted the SOXX ETF as a pure form of overvaluation rarely seen.
Burry's bearish outlook extends to the broader market, particularly chip stocks and AI infrastructure. He noted his concerns about financing arrangements he deemed "fugazi" that support AI infrastructure, involving insurers and private credit firms. He also moved put options on the iShares Semiconductor ETF (SOXX) from January 2027 to March 2027, and increased the strike price from approximately $320-$350 to over $400. This suggests a deepening conviction in his bearish views on the semiconductor sector.
Investor confidence in Tesla has been shaken in recent months, following a surge to $500 in late 2025. This deteriorating sentiment is attributed to dwindling EV sales, and the perpetually shifting timetable for Tesla's 'Robotaxi' and Full Self-Driving (FSD) rollout. The recent capital-intensive SpaceX initial public offering (IPO) may also be a contributing factor to the pressure on Tesla's stock. Other analysts, such as Gary Black of The Future Fund LLC, have also expressed concerns over Tesla's valuation and declining earnings estimates.
