Tesla is now at the low point in between two growth waves
Investor Gary Black, a well-known Tesla bull, drew questions from some investors last week after his Future Fund chose to cut its position in the electric-vehicle maker. According to the ETF's holdings list on its official website, Future Fund currently holds 360 shares of Tesla at a market value of USD63,122.
Black is short term negative on Tesla but long term positive.
Criticisms arose on X after Black first addressed the move publicly on Mar 8. He said the news was originally shared with its subscribers list and he summed up a few reasons the ETF made the cut, including that "[Tesla first-quarter Wall Street delivery estimates] remain too high."
Black continued to field questions from investors over the weekend and tweeted again on Mar 9 to go into more detail about the cuts.
In the new tweet, Black says, "Please recall that TSLA [management] has: argued they could potentially cut EV prices to zero gross margin and make it up on [Full-Self- Driving]/recurring [revenues]."
He also addresses several other pain points, including "long resisted investor calls to communicate with [internal-combustion -engine] owners about the lower costs and charging ease of EVs" and "long resisted called to bring out a USD25K-USD30K vehicle to expand [total addressable market] to the masses (now 2026)."
"The reason $TSLA is now in between two growth waves is not because of higher interest rates," he said.
However, Black goes on to explain the firm's reasoning for continuing to own shares in the EV maker, saying, "...we believe they are the best positioned to take advantage of the surge in global EV adoption which could reach 50% by 2030 (15% now)."
The investor wrapped up by highlighting more points of what the firm likes best about Musk's company.
"We believe TSLA has the best EV products on the market, are the lowest cost producer, have an amazing new product in Cybertruck which creates a halo effect for the entire franchise, will significantly expand TAM with its next gen platform, are starting to see the benefits of advertising, and will get a new contract to give CEO @elonmusk a path to 25% TSLA ownership," he wrote in the tweet.
Only die-hard fans believe in the FSD story, paying for a product that doesn't exist.
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