‘The Big Money Show’ panel discusses Elon Musk’s bold prediction that artificial intelligence will make work optional and money irrelevant in the near future.
Elon Musk’s Tesla took a hit from ‘Big Short’ investor Michael Burry, who claimed the electric vehicle maker is ‘ridiculously overvalued’ just days after raising concerns about the market’s AI boom.
“Tesla’s market cap is ridiculously overvalued today and has been for a long time,” Burry wrote in his Substack newsletter “Cassandra Unchained” on Sunday. Reuters reported this.
Burry further calculated that Tesla reduces existing shareholder interests by approximately 3.6% annually due to continued share issuance and lack of buybacks. He added that Musk’s massive compensation plan will contribute to that dilution.
Last month, Tesla shareholders voted to approve Musk’s $1 trillion pay package – the largest executive compensation plan ever. Under the plan, Musk would receive up to about 12% of Tesla stock, subject to restrictions, worth about $1 trillion if the company reaches a market cap of $8.5 trillion and meets other performance milestones over a 10-year period. At the end of November 2025, Tesla’s market value was about $1.43 trillion – making it the most valuable automaker in the world and more than five times larger than Toyota’s valuation of around $260 billion – while CEO Elon Musk holds about 13% of the company’s outstanding shares.
MUSK PREDICT ‘MONEY WILL NO LONGER BE RELEVANT IN THE FUTURE’ TO THE PROGRESS OF AI AND ROBOTICS
The revised compensation plan followed a Delaware judge’s decision in January 2024 invalidating Musk’s previous $56 billion pay package, which is still subject to ongoing litigation.
“Big Short” investor Michael Burry took aim at Elon Musk’s Tesla in the latest installation of his Substack newsletter. (Getty Images)
From Monday afternoon Tesla shares were trading around $427-$430, down slightly from the previous session. Over the past year, Tesla’s share price has risen sharply, reflecting investor optimism about its growth plans, although it is still below a 52-week high.
Burry rose to prominence after correctly predicting the collapse of the US housing market in 2007-2008, a bet he executed through early, controversial short positions on subprime mortgages.
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His foresight was later immortalized in Michael Lewis’ “The Big Short” and its Oscar-winning film adaptation, cementing his reputation as one of Wall Street’s most famous contrarian investors.
Reuters also reported that Burry has recently ramped up his criticism of tech industry giants like Nvidia and Palantir, “questioning the cloud infrastructure boom and accusing major providers of using aggressive accounting to inflate profits from their massive hardware investments.”
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Nancy Tengler, CEO of Laffer Tengler Investments, talks about Tesla investors approving Elon Musk’s $1 trillion pay package and more on ‘The Claman Countdown’.
Conversely, Musk said in a new interview on Sunday that he believes robotics and artificial intelligence (AI) will be essential to solving the nation’s more than $38 trillion debt.
“I think this is pretty much the only thing that’s going to solve the US debt crisis, because US debt is crazy high right now,” Musk said. “Interest payments on the debt exceed the entire military budget of the United States – just the interest payments, and they will continue to rise at least in the short term.”
