Investor Gary Black of The Future Fund LLC has reaffirmed his decision to exit his position in Tesla Inc.. This comes as the EV giant reported a Q1 delivery miss.
Exiting Tesla Was The Right Call
In a recent post, Black shared that his firm had exited Tesla last year. He stated that the move has been the “right call”, as Tesla has “struggled to turn around its core EV business” and shift towards a “highly competitive” autonomous driving sector without advertising investment.
Black mentioned that his firm took a lot of criticism from $TSLA bulls when they exited their position last May at $358. However, since then, it has been the right call, with TSLA underperforming the NDX.
Gary Black Slams Tesla’s Unsupervised Hype
The investor had earlier criticized Tesla’s performance, stating that the stock had underperformed the NDX for 5 years due to its failure to live up to the hype surrounding its vehicles’ ability to drive themselves unsupervised.
Black also expressed skepticism about CEO Elon Musk’s claims regarding Tesla’s Robotaxi, including serving over half the U.S. population by the end of last year and the Austin robotaxi going driverless by the end of last year. He pointed out that Tesla’s Robotaxi fleet in Austin remains at just 9 vehicles.
Current Price Action
TSLA fell 5.42% to $360.59 at market close on Thursday but gained 0.19% to $361.26 during the after-hours trading session.
Conclusion
According to recent rankings, Tesla offers satisfactory momentum and growth, as well as a favorable price trend in the long term. However, investors like Gary Black remain skeptical about the company’s ability to live up to its hype and deliver on its promises.