/ December 1, 2025 A stark warning from a prominent investor and alarming sales data from key European markets have converged to cast a shadow over Tesla’s outlook. Michael Burry, the investor famed for predicting the 2008 housing collapse, has issued a scathing critique of the electric vehicle maker’s valuation, coinciding with reports of a dramatic downturn in European registrations. European Demand Shows Significant Cracks Fresh vehicle registration figures for November reveal a troubling picture for Tesla across several European nations, raising questions about demand for its core automotive business. In France, new Tesla registrations plummeted by 58% to just 1,593 vehicles. Denmark witnessed a 49% decline, with only 534 units registered. Norway provided a sole bright spot, recording a surge of 175% to 6,215 registrations. However, the strong performance in Norway is insufficient to offset the severe contractions in other major markets. This erosion comes amid intensifying competition, with rivals gaining ground. The weakness is not confined to Europe; in China, Tesla’s deliveries through October fell approximately 7% year-over-year, even as competitors like Li Auto and Nio posted gains. Burry’s Scathing Analysis of Valuation and Strategy In his latest published commentary, Michael Burry launched a multi-pronged attack on Tesla’s financial and strategic position. He labeled the stock as “absurdly overvalued,” pointing to a price-to-earnings ratio hovering around 295. A central pillar of his criticism focuses on shareholder dilution. Burry highlighted that Tesla dilutes its share capital by roughly 3.6% annually through stock-based compensation, absent a counteracting buyback program. For context, he notes Amazon’s dilution rate is 1.3%, while even Palantir, known for dilution, stands at 4.6%. Burry was particularly sharp in his assessment of CEO Elon Musk’s potential compensation package, valued at up to a trillion dollars, describing it as a guarantee for further significant dilution at the expense of current shareholders. He also dismissed the company’s strategic pivot toward robotics and autonomous driving as a “narrative shift”—a distraction from its struggling primary auto operations.