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Michael Burry questioned Tesla 's valuation as the investor of "The Big Short" fame took aim at the practice of technology companies issuing tons of stock-based compensation and excluding it from earnings results.

The investor argues that when accounting for the true profits that include the cost of this compensation and its negative dilution of the company's value over time, companies like Tesla should have lower valuations.

"Tesla's market capitalization is ridiculously overvalued today and has been for a good long time," Burry, who rose to fame for his call on a housing market bubble in the 2000s, wrote to subscribers of his new paid Substack .

Burry pointed out that Tesla dilutes shareholders at a

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