Tesla Drops 7.5% as Burry Short Call Triggers AI-EV Selloff

On July 3, market commentary highlighted Michael Burry’s June 30 short basket coinciding with sharp pullbacks in AI, EV and chip stocks. Tesla fell 7.5% on July 2 despite reporting 480,126 Q2 deliveries, extending a move that began after the stock rallied 11% weekly to $420.60. Burry established the TSLA short at $416.22 alongside positions in NVDA, AMAT and CAT, citing valuations above 300x trailing earnings and execution risks in Cybercab and Optimus. The Philadelphia Semiconductor Index dropped more than 6% the same day, with memory names also hit. Attention now turns to Tesla’s July 22 earnings for signs of a broader correction.