Michael Burry Shorts Tesla Ahead of Q2 Deliveries, Black Sees Beat
AMAT•Michael Burry established a new short position in Tesla ahead of Q2 delivery numbers, betting on weaker-than-expected volume or price pressure. Separately, industry veteran Gary Black projects Tesla will exceed delivery forecasts for the quarter but declines to buy the shares, citing valuation concerns.
1. Burry's Short Position
Michael Burry initiated a new bearish position in Tesla stock ahead of the Q2 delivery report, using derivatives that profit if shares decline. This move suggests Burry anticipates either a slowdown in delivery growth or increased pricing pressure in the coming quarter.
2. Black's Delivery Outlook
Gary Black forecasts that Tesla will surpass consensus delivery estimates for Q2, driven by continued production ramp at the Shanghai and Austin Gigafactories. He highlights robust order backlogs and improved logistics as key drivers of the expected beat.
3. Valuation and Ownership Decision
Despite forecasting a delivery beat, Black refrains from owning Tesla shares due to what he views as an expensive valuation. He points to stretched price-to-sales and price-to-earnings ratios, along with potential margin headwinds, as reasons to stay sidelined.
