Gary Black from The Future Fund announced the sale of their entire Tesla holdings, marking a significant pivot since 2021. Black has expressed skepticism about Tesla, primarily focused on its high price-to-earnings (P/E) ratio and disappointing delivery results this year. He believes the stock is overvalued at a 2025 P/E of 188x. Future delivery predictions are also grim, with Black anticipating a decline beyond Wall Street estimates. Additionally, he has raised concerns regarding the potential success of Tesla's Robotaxi and affordable model offerings, indicating broader worries about the company’s growth trajectory.
Black's main concern centers around Tesla's inflated price-to-earnings ratio, expressing skepticism over its future earnings, which have fallen significantly this year.
The Future Fund's decision to sell at $358 reflects their bearish outlook, maintaining a price target of $310 based on future delivery and earnings forecasts.
Skepticism about Tesla's Robotaxi project showcases a critical view of potential innovation risks, fearing that its rollout may ultimately disappoint investors.
Black’s analysis predicts a steeper decline in quarterly and yearly deliveries compared to Wall Street's more optimistic estimates, indicating a major divergence in outlook.
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