Gary Black, Managing Partner of The Future Fund LLC, has expressed his unwillingness to short Tesla Inc. (NASDAQ:TSLA) despite his concerns with the EV giant's valuation. Tesla Is Too Good A Company Taking to the social media platform X on Tuesday, Black shared an insight into why investors invoke short positions against a company’s stock. “Shorting stocks is no picnic,” he said. Black added that the ideal candidates for shorting include businesses that face "secular demand decline or permanent market sh ...

Gary Black, Managing Partner of The Future Fund LLC, has expressed his unwillingness to short Tesla Inc. (NASDAQ:TSLA) despite his concerns with the EV giant's valuation.Tesla Is Too Good A CompanyTaking to the social media platform X on Tuesday, Black shared an insight into why investors invoke short positions against a company’s stock. “Shorting stocks is no picnic,” he said.Black added that the ideal candidates for shorting include businesses that face "secular demand decline or permanent market share lo ...

Core Insights - Tesla Inc. is experiencing stock price boosts due to optimism around advancements in unsupervised autonomy and the potential approval of CEO Elon Musk's $1 trillion compensation package [2][6]. Group 1: Stock Drivers - The first catalyst for Tesla's stock increase is the growing optimism regarding breakthroughs in unsupervised autonomy, as noted by Gary Black [2]. - The second factor is the strong belief that shareholders will approve Musk's substantial compensation package at the upcoming Annual Meeting [2]. Group 2: Cautionary Notes - Despite positive developments, there is caution regarding Tesla's high valuation, with a projected 2026 price-to-earnings (PE) ratio of approximately 200x against a long-term earnings growth of 35% [3]. - Investors may be overly optimistic about the speed of deploying Level 4 and Level 5 unsupervised robotaxis without safety monitors [3]. Group 3: Price Target and Performance - The analyst has set a 6-12 month price target of $310 for Tesla stock, indicating a potential downside of 32% from the recent closing price [4]. - Tesla's third-quarter results showed record electric vehicle deliveries but also highlighted declining profits, leading to divided opinions among analysts regarding future stock price movements [6]. Group 4: Robotaxi Operations - Currently, Tesla's robotaxis are operational only in Austin and the San Francisco Bay Area, with 150 robotaxis in service [5]. - The removal of safety monitors from robotaxis is seen as a major catalyst for future growth, with a target set by Musk to achieve this in Austin by the end of the year [5]. Group 5: Investor Confidence - The endorsement of Musk's compensation package by the State Board of Administration of the Florida Retirement System has further bolstered investor confidence, viewing it as a bold incentive for value creation [6][7].