Gary Black, Managing Partner of The Future Fund LLC, argues that Tesla’s reliance on price cuts for growth is insufficient. He believes Tesla needs new vehicle form factors to capture untapped market segments and achieve its projected 20-30% volume growth in 2025. This analysis comes after Tesla’s Q3 earnings report, which showed revenue growth but missed analyst expectations.
Prominent investment analyst Gary Black reveals why Nvidia remains his top pick over Tesla, highlighting stark differences in earnings estimates, PEG ratios, and market performance. Black’s analysis underscores the importance of disciplined, data-driven investment strategies.
The Future Fund, an active ETF managed by Gary Black, has trimmed its Tesla holdings despite the company’s stock performance. Black expressed concerns about the impact of Tesla’s price cuts on earnings and the viability of its robotaxi technology. However, Tesla remains a top performer for the fund, with a 29% gain in 2024.
The Future Fund LLC’s Gary Black has raised his price target for Tesla to $300, citing strong earnings and market indicators. He projects a long-term target of $600 by 2030, driven by continued growth in Tesla’s electric vehicle business. While Black acknowledges the stock’s recent volatility, his optimism stems from Tesla’s exceeding earnings expectations and positive market sentiment. However, it’s important to note that not all analysts share the same level of enthusiasm for Tesla’s future.
Gary Black, Managing Partner of The Future Fund LLC, revealed that Tesla has been the biggest drag on his portfolio since January 2022, despite his overall positive investment performance. While Black remains bullish on Tesla, his fund’s top performers include NVIDIA, Alphabet, Eli Lilly, and Salesforce.
Tesla’s first-quarter earnings call elicited mixed reactions from analysts, leading to a 13% spike in after-hours trading. Future Fund’s Gary Black praised CEO Elon Musk’s performance, highlighting the confirmation of an accelerated start of production for the next-gen vehicle and reassurances about 2024 volumes. Deepwater Asset Management’s Gene Munster projected a potential future rivalry between Tesla, Uber, and Lyft in the ride-hailing sector, envisioning a fleet in the tens of millions. However, Tesla bear Gordon Johnson of GLJ Research expressed a sharply negative view, criticizing the abandonment of the next-gen platform and record cash burn.
