Investor Gary Black is puzzled by the lack of sales growth at Tesla, given the current rise in oil prices and the ongoing US-Iran conflict. With Brent crude oil prices hovering around $105 per barrel and no end in sight to the Middle East war, Black expects Tesla’s sales to surge. However, he believes the company’s failure to advertise and educate potential consumers about the benefits of electric vehicles (EVs) is a major obstacle to sales growth.
Lack of Advertising
Black criticized Tesla’s lack of advertising, stating that the company is not doing enough to inform potential buyers about the advantages of EVs, including ease of charging, superior performance, and lower operating costs. He also pointed out that Tesla’s Full Self-Driving (FSD) technology is a major selling point, but few people outside of the devoted fan base are aware of its benefits.
Tesla’s Sales in Europe
Despite the lackluster sales growth in the US, Tesla has reported a 10% growth in registrations across Europe, with sales growth in countries such as France, Portugal, and Germany. The company registered 17,425 vehicles in February in the European market, although its year-to-date sales for 2026 remained flat.
Gas Prices Surge
The conflict with Iran has led to a surge in gas prices across the US, with the average price for gasoline at the pump reaching $3.699/gallon. Californians are paying even more, with prices reaching $5.05/gallon. California Governor Gavin Newsom has slammed the Trump administration for the rising gas prices, which are having a significant impact on American consumers.
Tesla’s Stock Performance
Despite the challenges facing the company, Tesla’s stock has performed well, with a favorable price trend in the long term. The company’s score on the Momentum metric is also strong, according to the Benzinga Edge Rankings. In pre-market trading on Monday, TSLA gained 0.82% to $394.39.
Conclusion
In conclusion, while Tesla’s sales should be booming given the current market conditions, the company’s lack of advertising and education about the benefits of EVs is a major obstacle to sales growth. Despite this, the company has reported growth in registrations in Europe, and its stock has performed well in the long term. As the US-Iran conflict continues and gas prices surge, it will be interesting to see how Tesla’s sales and stock performance are affected in the coming months.