Tesla shares rebounded from an early decline on Monday to close nearly flat, overcoming pressure from a broader market sell-off and critical commentary from high-profile investor Michael Burry.
Market Performance:
- The stock fell as much as 1.1% during the session but recovered to end down just three cents at $430.14.
- Broader indices also fell: the S&P 500 dropped 0.5%, and the Dow Jones Industrial Average declined 0.9%.
Factors Weighing on Sentiment:
- Michael Burry’s Warning: In a weekend Substack post, the Big Short investor called Tesla “overvalued.”
- Slowing Chinese EV Sales: Chinese rivals Li Auto, NIO, and XPeng reported November deliveries that grew only 6% year-over-year, their slowest growth in 2025. Tesla’s China deliveries through October were down about 7% year-over-year.
- Recent Volatility: Despite a 10% gain last week, Tesla stock still ended November with a monthly loss of about 6%.
Musk’s Sunday Interview Highlights:
In a conversation posted on X, CEO Elon Musk discussed the convergence of his companies:
- He emphasized the synergy between SpaceX, Tesla, and xAI, suggesting SpaceX’s satellites could support AI-powered Tesla vehicles and robots.
- Musk noted that Tesla shareholders recently approved a non-binding vote allowing the company to invest directly in his AI firm, xAI.
- When asked about his affinity for the letter “X,” Musk humorously reflected on his history with the brand, dating back to a financial services startup in 1999.
Outlook:
While near-term concerns over valuation and demand persist, Tesla’s narrative remains tied to Musk’s broader vision of an AI and robotics-driven future, which continues to captivate investor imagination.