Tesla(US:TSLA) Benzinga·2026-01-16 10:57Core Viewpoint - Investor Gary Black has exited his position in Tesla due to concerns over its stock valuation and increasing competition in the electric vehicle (EV) market [1][4]. Group 1: Tesla's Valuation and Competition - Black compared Tesla's situation to Amazon's early days, noting that he invested in Amazon when it had an "infinite P/E" due to its potential in retail [2]. - He highlighted that Tesla was his fund's largest position for years because it could produce high-quality EVs at a significant cost advantage [4]. - The decision to exit Tesla was influenced by the penetration of competition in the EV market and the stock price exceeding his valuation estimates [4]. Group 2: Autonomous Driving Trends - Black sees a similar trend in autonomous driving, with many competitors now offering "unsupervised autonomous ride hailing" as Nvidia democratizes autonomy with its technology [5]. - Despite liking Tesla as a company, Black expressed a negative outlook on the stock itself [5]. Group 3: Tesla's Sales Performance - Tesla's Model Y was the best-selling EV in the U.S. last year, with over 357,528 units sold [6]. - The company introduced a 7-seater layout version of the Model Y, which could further enhance sales [6]. - Tesla has transitioned its Full Self-Driving (FSD) service from an $8,000 one-time payment to a $99/month subscription model [6]. Group 4: Market Performance - Tesla scores well on momentum and shows a favorable price trend in the short, medium, and long term according to Benzinga Edge Rankings [7]. - During pre-market trading, Tesla's stock gained 0.46%, reaching $440.59 [7].