Investor Gary Black, managing director of Future Fund LLC, has expressed concerns over Tesla’s marketing strategy, particularly with regards to its Full Self-Driving (FSD) technology. Black believes that the company’s bullish supporters are engaging in “delusional thinking” by assuming that FSD will sell itself without a robust marketing effort.
World Class Marketing Needed
Black stressed the need for a “world class” marketing and communications strategy to increase FSD take rates, which are currently in the mid-teens. He argued that this would be necessary to achieve the 40%-50% take rates that are discounted by Tesla’s 2026 P/E of 200x. Black also emphasized that the company’s communications are its weakness, and that a better marketing strategy is essential to compete with its peers.
Tesla’s FSD Woes
During Tesla’s first-quarter 2026 earnings call, Elon Musk revealed that vehicles equipped with the Hardware 3 (HW3) chips would not be able to achieve unsupervised FSD. Musk also stated that the company 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, hadn’t evaporated after Musk’s comments.
Concerns Over FSD
Black shared his concerns over FSD on social media, stating that many Tesla bulls think the technology is so good that it will sell itself. He argued that this “delusional thinking” is similar to the mindset of bulls who blindly parroted Musk’s target of 20 million vehicle deliveries by 2030. Black emphasized that a world-class marketing strategy is necessary to increase FSD take rates and achieve the company’s growth targets.
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 price trend in the long term have raised concerns among investors.
Conclusion
In conclusion, Gary Black’s criticism of Tesla’s FSD hype highlights the need for a robust marketing strategy to increase FSD take rates and achieve the company’s growth targets. With concerns over FSD and the company’s poor momentum, it remains to be seen how Tesla will address these challenges and achieve its goals.