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In a medium Dutch oven or large sauté pan, heat olive oil over high heat until shimmering. Add onion and chile pepper and cook, stirring occasionally, until onions have started to brown but are not yet translucent, about 5 minutes.
Stir in tomatoes and machaca, lower heat to medium, and cover with a lid. Cook, stirring every few minutes, until tomatoes have broken down and coated the machaca in a sauce and the machaca has rehydrated and softened, about 10 minutes; if your tomatoes are not juicy enough, you can moisten the stew with just enough beef or chicken stock to barely cover the tomatoes and beef. Stir in cilantro, turn off heat, and taste; season with salt only if needed. Serve warm.