Remember Porter Collins? He’s the guy from “The Big Short” who made bank betting against the housing bubble. Well, he’s back with some spicy takes about Tesla, and honestly, they’re pretty hard to ignore.
Collins just told Business Insider that Tesla is basically the “poster child” for overvalued stocks. And when a dude who literally predicted one of the biggest financial crashes in history starts throwing shade at your favorite EV company, maybe it’s time to listen.
Here’s the tea: Tesla stock has nearly doubled since April, which sounds awesome until you realize their sales are actually going down. Plot twist – they’re not even the world’s biggest EV maker anymore. That honor goes to BYD, a Chinese company you’ve probably never heard of but should definitely Google later.
So what’s keeping Tesla’s stock price in the stratosphere? Collins thinks it’s pure meme energy. “I honestly think Tesla is just a meme stock,” he said. “People follow Elon Musk and they think he will produce generational type products in the future.”
The numbers are pretty wild when you break them down. While Nvidia trades at about 45 times next year’s earnings, Tesla is sitting pretty at almost 300 times its 2026 projection. That’s like paying $300 for a burger because you think the chef might invent the perfect fry someday.
Collins argues Tesla should be valued like other automakers or tech companies, not in its own magical unicorn category. Right now, it’s basically trading on vibes and Elon tweets rather than boring stuff like actual profits.
But here’s where it gets interesting – Collins isn’t actually shorting Tesla. Neither is Michael Burry, another “Big Short” legend who’s been roasting Tesla on his Substack. These guys literally made careers out of betting against overvalued assets, but they’re staying away from Tesla shorts.
Why? Because meme stocks are unpredictable beasts. Collins admits that “meme stocks have tended to be high flyers.” GameStop and AMC eventually crashed back to reality, but Tesla? It’s still flying high on hopes, dreams, and the occasional robot demonstration.
The bulls will tell you Tesla’s AI efforts will eventually justify these crazy valuations. Maybe they’re right – Elon has pulled off some pretty impressive stuff before. But the bears are pointing at declining sales and asking, “When exactly is this AI magic supposed to kick in?”
Here’s the thing about Tesla: it’s not really a car company or a tech company. It’s become something entirely different – a bet on Elon Musk’s ability to revolutionize multiple industries simultaneously.
Collins summed it up perfectly: “He may or may not [produce generational products], but that’s the bet right now.” And honestly, that’s probably the most honest thing anyone’s said about Tesla in years.
So whether you’re team Tesla or team reality check, just remember – even the guys who saw the housing crash coming are treating this stock like it’s radioactive. That should tell you something about how wild this ride really is.