A legendary investor with a strong fund track record bets against the electric vehicle leader Tesla Inc TSLA.

While the investor recognized Tesla as a great company, he saw several reasons why stocks could fall.

What happened: Tesla’s shares have fallen more than 60% in 2022, marking the biggest annual drop for the company since its IPO. As a result, Tesla was sold short over $15 billion profit.

Legendary Investor Bill Mueller sees more pain for Tesla and is short the stock.

Known for his role with Legg Mason Capital Management and now with Miller Value FundMiller said increased competition is the main reason Tesla’s valuation could suffer.

“I recently short circuited it. I cut more (Friday). If it goes up, I’ll short more,” Miller said in an interview CNBC.

Miller highlighted Tesla’s market cap at more than $350 billion, roughly double Tesla’s Toyota Motor Corp TM and about seven times the size of General Motor Company GM.

“I just don’t think it’s worth more than the five largest automakers in the world combined. Everyone comes with electric vehicles.”

Miller also praised Tesla’s CEO Elon Musk in his job interview.

“I think Tesla was a phenomenal company. I think Elon Musk is a genius.”

Miller sees Tesla losing market share to electric vehicle competitors, and also noted price cuts for Tesla in several markets as an opportunity nod to China.

“Tesla is now losing market share. You lower the price. It’s a phenomenal company, but it’s not worth $380 billion in my opinion.”

Related link: Apple overtakes Tesla as the most-cut stock: Here’s why it matters and why it doesn’t

Why it matters: Miller’s comments were interesting as they indicated that Tesla is a great company and a market leader, but raised concerns about valuation and potential competition.

Miller also noted that Tesla is a car company and shouldn’t be valued as a technology company…