Tesla (TSLA) has never been a stock that trades quietly. Bulls see it as an artificial intelligence (AI), robotics, and autonomous driving (AD) company. Bears see an expensive automaker facing slower electric vehicle (EV) demand and mounting competition. That debate is heating up again after infamous investor Michael Burry disclosed on June 30 that he opened a new short position in Tesla at $416.22, saying he was “happy it jumped back to this level.” Burry’s entry came after a more than 8% rally in TSLA stock, partly on bullish Wall Street delivery forecasts. Now his move has traders asking whether Tesla’s momentum has finally stalled.
Does Burry's latest bet change the Tesla investment case? It certainly adds another headline risk. But Tesla's future will still depend far more on deliveries, earnings execution, and its AI roadmap than on one investor's position.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Tesla Still Commands a Premium Valuation
Tesla has had a tough year. Shares are down more than 12% year-to-date (YTD), trailing many other large-cap tech stocks, although they remain up by about 24% over the past 12 months. Investors have worried about slowing EV demand, higher interest rates, the phaseout of some EV incentives, and heavy spending on AI and manufacturing expansion.
Even after that volatility, Tesla remains one of the market's most expensive large-cap companies. TSLA stock trades at roughly 328 times forward earnings and about 16.8 times forward sales. By comparison, most traditional automakers trade at around 20 times earnings and roughly 2 times sales. That enormous premium tells investors one thing: The market isn't valuing Tesla like a car company. It's pricing in years of future growth from AI, autonomous driving, robotics, and energy storage.
www.barchart.com Is Michael Burry Betting Against Expectations?
Michael Burry became famous after correctly predicting the 2008 housing crash. Naturally, investors pay attention whenever he takes a major position.
Tesla’s delivery report has now been released, and the results may complicate Michael Burry’s bearish thesis. Tesla delivered about 480,000 vehicles in the second quarter, well ahead of Wall Street expectations that were centered around roughly 400,000 to 420,000 vehicles. The stronger-than-expected numbers suggest demand held up better than many investors anticipated and could support sentiment around the stock. Still, while the delivery beat removed one near-term concern, investors remain focused on broader questions around margins, competition, and Tesla’s long-term growth outlook.
Still, Tesla's long-term story extends well beyond vehicle sales. The company plans to spend more than $20 billion during 2026 to expand AI computing capacity, manufacturing, and next-generation products. That aggressive investment is weighing on margins today, but management believes it lays the foundation for future growth.
Wall Street Still Sees Long-Term Potential for TSLA Stock
Analysts remain divided, but few have abandoned Tesla stock altogether. Goldman Sachs argues Tesla must continue proving its leadership in autonomy and robotics to justify its premium valuation. Morgan Stanley also remains cautious on near-term deliveries while viewing AI and autonomous driving as important long-term opportunities.
JPMorgan recently became more constructive, lifting its price target to $475 after pointing to improving Full Self-Driving (FSD) capabilities, robotaxi progress, and better execution. Meanwhile, Barclays remains skeptical, warning that slowing EV demand and growing competition could continue pressuring profitability.
Overall, Wall Street maintains a "Moderate Buy" consensus rating. The average price target is $412.39, which is 5% higher than Tesla's trading price as of now. Some bullish analysts see shares reaching as high as $600 if Tesla successfully commercializes autonomous driving and robotics.
Michael Burry's latest short isn't something that you'll want to miss. However, Tesla's future may hinge on its delivery growth, earnings execution, progress in AI, and whether its massive investments end up delivering the growth investors have already priced into TSLA stock.
www.barchart.com On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
Is Microsoft Stock Too Cheap Here? One Play is to Short Cash-Secured MSFT Puts Michael Burry Is Betting Against Tesla Again. He’s Not Buying the AI Hype Story. DAL Earnings Play: Using Puts to Get Paid While You Wait Stocks Set to Open Higher on Tech Boost, Fed Minutes Awaited