Tesla Inc. (TSLA) shares slipped Tuesday as the electric vehicle maker found itself caught between Michael Burry's skepticism and surprisingly robust China sales figures.
Burry Sets the Record Straight
The "Big Short" investor took to X on Tuesday to clear up what he called misreadings of his recent Substack critique. "I never said I was short TSLA," Burry wrote, pushing back against news coverage that suggested he was actively betting against the company.
But don't mistake that clarification for optimism. Burry still thinks Tesla is "ridiculously overvalued" and getting worse thanks to what he calls "tragic algebra." His main concern? A 3.6% annual shareholder dilution rate with zero buybacks to offset it. That steady erosion is likely to accelerate, he warned, especially after shareholders approved Elon Musk's eye-popping $1 trillion pay package.
China Delivers Unexpected Strength
While Burry was airing his concerns, Tesla's China numbers told a different story. The company's China-made EV sales climbed 9.9% year-over-year in November, according to Reuters. Even more impressive: the China Passenger Car Association reported that Shanghai-produced Model 3 and Model Y vehicles—including exports to Europe and elsewhere—jumped 41% from October to November. That's the strongest year-over-year growth Tesla has posted in 14 months.
The surge came courtesy of some smart product moves. Tesla introduced a longer-range rear-wheel-drive Model Y in China last month, building on earlier launches of an extended-range Model 3 and a six-seat Model Y L. More options meant more buyers, and the momentum followed.
But it's not all smooth sailing. Tesla faces relentless pressure from local competitors like BYD, and newcomer Xiaomi has burst onto the scene with its SU7 sedan and YU7 SUV. Xiaomi already blew past its 350,000-vehicle sales target for the year, proving it's not just another tech company dabbling in cars.
Technical Picture Shows Mixed Signals
Tesla stock opened at $430.81 on Tuesday, hit a high of $436.80, then retreated to a low of $422.12 during the session. The stock is currently trading about 2.2% below its 50-day moving average—a short-term bearish signal. But zoom out and it's still roughly 24.6% above its 200-day moving average, suggesting longer-term bulls haven't abandoned ship.
The 52-week range of $214.25 to $488.53 tells the volatility story in one glance. With the current price sitting closer to the middle-to-lower end of that range, bargain hunters might start circling. Key support sits at that recent $422.12 low; if that breaks, things could get uncomfortable. On the upside, resistance appears around $430, where sellers have shown up before.
Price Action: Tesla shares were down 1.03% at $425.70 at the time of publication Tuesday, according to MarketDash data.
