Investor Gary Black, Managing Director of the Future Fund LLC, has criticized Tesla bulls for their overly optimistic views on the company’s Full Self-Driving (FSD) technology. Black emphasized the need for a better marketing strategy to improve FSD sales.
World Class Marketing
According to Black, many Tesla bulls believe that FSD is so advanced that it will sell itself, but he argues that this is a delusional mindset. He also slammed supporters of the company who blindly parroted Elon Musk’s target of 20 million vehicle deliveries by 2030. Black reiterated that Tesla needs a “world class” marketing and communications strategy to increase FSD take rates above the current mid-teens level.
Tesla’s FSD Woes
During Tesla’s first-quarter 2026 earnings call, Elon Musk shared that vehicles equipped with the Hardware 3 (HW3) chips would not be able to achieve unsupervised FSD. Musk also mentioned that the automaker could retrofit new hardware on vehicles with HW3 chips. These comments led to analyst Gordon Johnson questioning why Tesla’s value, driven by self-driving pursuits, wasn’t evaporating after Musk’s comments.
FSD Challenges
The FSD system has faced significant challenges, and Musk’s comments have raised concerns about the company’s ability to deliver on its self-driving promises. Despite these challenges, Tesla bulls remain optimistic about the company’s future, but Black argues that this optimism is unfounded.
Price Action
Tesla’s stock declined 0.70% to $376.02 at market close on Tuesday but surged 0.49% to $377.88 during the overnight trading session. The company’s poor momentum and unfavorable long-term price trend have raised concerns among investors.
Conclusion
In conclusion, Gary Black’s criticism of Tesla bulls highlights the need for a more realistic assessment of the company’s FSD technology and its marketing strategy. While Tesla has shown promise in the electric vehicle market, its self-driving pursuits have faced significant challenges, and investors should approach the company’s stock with caution.