02 Jan 2026, 10:01 AM IST i According to a CNBC report, Burry also pointed to the recent shareholder vote approving Tesla CEO Elon Musk’s $1 trillion compensation package as a development that could worsen the situation. He said the approval signals continued dilution, as more shares are likely to be issued under the plan. The proposal passed with the support of about 75% of voting shareholders, despite opposition from proxy advisory firms Glass Lewis and ISS. “With recent news of Elon Musk’s 1 trillion dollar pay package, dilution is certain to continue,” Burry wrote. Tesla’s market capitalisation currently stands at $1.43 trillion. Its shares have risen by more than 6% so far in 2025, while the S&P 500 has gained over 15% during the same period, according to CNBC. Burry noted that overcoming dilution is challenging for companies and said Tesla is not alone. He highlighted Palantir and Amazon as other technology firms that rely heavily on employee stock compensation. Though he is not shorting Tesla at present, Burry has bet against the stock in the past, according to Business Insider. A regulatory filing in May 2021 showed he had built a $530-million short position, which he later exited within a few months. Burry is not alone among The Big Short cohort. Danny Moses, a former trader at Steve Eisman’s FrontPoint Partners, has also previously bet against Tesla but closed his position in 2024, saying it is extremely difficult to short a stock that is not trading on fundamentals. Burry launched his Substack, Cassandra Unchained, late last month after deregistering his hedge fund, Scion Asset Management. According to CNBC, the newsletter costs $379 a year. ALSO READ