Tesla analyst Gary Black of The Future Fund announced that his firm has divested its entire position in Tesla, marking a shift in strategy for the first time since 2021. Black cites concerns over the stock's high price-to-earnings ratio, a forecasted decline in delivery volumes, and skepticism about future projects like the Robotaxi initiative. The firm's current price target of $310 reflects deeper reservations about the company's growth trajectory, forecasting lower earnings due to underwhelming performance in early 2023 and adjustments in market expectations for Tesla's earnings potential.
Black believes that TSLA now sells at a 2025 P/E of 188x, as earnings estimates continue to fall due to weak deliveries, including disappointing April results.
Black states that the risk/reward of the Austin robotaxi test remains asymmetrical to the downside, questioning its potential as a robust catalyst for Tesla.
The Future Fund’s current price target is at $310, based on forecasts of 2030 Tesla volumes of 5.4 million and adjusted EPS of $12.
Many investors see the upcoming Robotaxi platform as Tesla's biggest future catalyst, despite Black's skepticism regarding its viability and timing.
Collection
[
|
...
]