Michael Burry Shorts Tesla at $416.22 Ahead of Q2 Deliveries

Prominent investor Michael Burry, known for predicting the 2008 housing crisis, announced he has shorted Tesla (TSLA) shares at $416.22, just before the company's Q2 delivery report. Burry expressed relief that the stock returned to that level.

Trade Details

Burry, who runs Scion Asset Management, revealed the position in a post on X (formerly Twitter). He said he was "finally happy" the stock returned to that level to initiate a short. He did not disclose the size of the position or the holding period.

Analyst Reactions

Meanwhile, analyst Gary Black of Future Fund said he expects Tesla to report Q2 deliveries above consensus estimates, but added that he still does not own the stock. Black cited Tesla's high valuation relative to earnings as a deterrent.

Market Context

The development comes days before Tesla's Q2 delivery numbers, a key metric watched by investors as a demand indicator. Tesla shares have rallied about 50% year-to-date, fueled by optimism around AI and robotics.

What It Means for Investors

Burry's move highlights the divide among investors on Tesla's valuation. While Burry sees the stock as overvalued, others remain bullish on long-term growth prospects. Investors should closely watch the upcoming delivery report.