Tesla Q4 vehicle deliveries drop 16%, replaced by BYD as the leading brand. Michael Burry explains why he is not shorting.

Investing legend Michael Burry, famous for betting against the 2008 financial crisis, has recently issued multiple warnings that bubbles are forming around artificial intelligence (AI) related topics. He has also long maintained a highly cautious stance on Tesla’s (Tesla) valuation. However, Burry recently explained in rare detail that although he still believes Tesla is severely overvalued, he has not chosen to short the stock. The main reason is that the risks and costs associated with shorting have become so high that they are no longer attractive.

Tesla Q4 Deliveries Fall Short of Expectations, BYD Becomes the World’s Largest Electric Vehicle Manufacturer

Burry pointed out that from a fundamental perspective, Tesla is facing multiple pressures. Its global electric vehicle sales are showing a downward trend, market competition is intensifying, price wars are eroding margins, and growth is slowing, leading to a significant disconnect between the current stock price and actual operational performance. In his view, Tesla’s overall valuation level is seriously detached from its fundamentals.

Tesla’s latest official data shows that Tesla’s global deliveries in Q4 2025 are approximately 418,227 units, about a 16% decrease year-over-year, and below the market expectation of around 426,000 units. While Tesla’s delivery growth has slowed, BYD’s total deliveries for 2025 are estimated at about 4.6 million units, which is seen as officially replacing Tesla as the world’s largest electric vehicle manufacturer.

Legendary Short Seller Michael Burry Explains Why He Is Bearish on Tesla but Not Shorting

When asked by netizens if he would short Tesla at this price level, Michael Burry straightforwardly replied: I am not shorting.

Burry pointed out the practical limitations of derivative products. Whether buying put options or betting on stock declines through other structural methods, the premium costs in the current market are quite expensive, and the rapid time decay makes it unfriendly for investors. He frankly stated that for most people, there isn’t much they can do when facing a target like Tesla.

Under these circumstances, Burry believes that the only relatively straightforward and risk-controlled options are to either not hold the stock at all or to sell shares if already owned, rather than attempting to bet on a decline with high leverage.

This article, “Tesla Q4 Deliveries Drop 16%, Replaced by BYD as the Leading Manufacturer,” first appeared on Chain News ABMedia.