Renowned investor Michael Burry, famous for predicting the 2008 financial crisis, has turned his criticism toward Tesla Motors after targeting Nvidia, labeling the electric vehicle maker's valuation as "absurd."

In a post on his paid Substack newsletter, *Cassandra Unchained*, Burry argued that Tesla's current market capitalization is "ridiculous from a valuation standpoint" and has been so for an extended period. He highlighted that Tesla dilutes shareholder equity by approximately 3.6% annually through stock-based compensation, with no buybacks to offset this dilution. Burry also pointed to Elon Musk's unprecedented compensation package, which could grant him up to $1 trillion in Tesla stock if performance and market cap milestones are met over the next decade.

Tesla's stock currently trades at around 209 times forward earnings, significantly higher than its five-year average of 94 times. In contrast, the S&P 500 trades at about 22 times forward earnings.

This isn't Burry's first bearish stance on Tesla. In May 2021, his firm, Scion Asset Management, disclosed a substantial short position via put options. However, by October 2021, Burry stated he had exited the short, calling it "just a trade."

Recently, Burry has intensified his scrutiny of tech giants, including Nvidia and Palantir, questioning the sustainability of cloud infrastructure growth and accusing major cloud providers of using aggressive accounting to inflate profits through heavy hardware investments.

Burry launched *Cassandra Unchained* in November after closing Scion Asset Management and returning capital to investors, stating that the newsletter would now be his "full-time focus."