Core Viewpoint - Investor Gary Black has exited his position in Tesla Inc. due to concerns over its stock valuation and increased competition in the electric vehicle (EV) market [1][4]. Group 1: Tesla's Valuation and Market Position - Black compared Tesla's current valuation to Amazon's early days, noting that he invested in Amazon despite its infinite P/E ratio because he recognized its potential in retail [2][6]. - Tesla was previously Black's fund's largest position, attributed to its unique ability to 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 Black's valuation estimates [4]. Group 2: Future Trends and Competitors - Black sees a similar trend emerging in autonomous driving, with many competitors beginning to offer unsupervised autonomous ride-hailing services, facilitated by advancements in technology from companies like Nvidia [5]. - Despite the exit from Tesla stock, Black maintains a positive view of the company itself, indicating a distinction between the company's potential and its current stock valuation [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, and the introduction of a 7-seater layout version could further enhance sales [6].

Core Viewpoint - Tesla's CEO Elon Musk announced that the company will offer its Full Self-Driving (FSD) technology as a subscription service starting next month, raising questions about the motivations behind this decision and its potential connection to Musk's compensation package [1][2]. Group 1: Announcement Details - The FSD service will no longer be available for a one-time payment after Valentine's Day, with the subscription priced at $99 per month, which totals over $1,188 annually [2]. - This subscription model could potentially increase customer adoption of FSD technology [2]. Group 2: Compensation Package - Musk's new pay package, approved last November, is divided into twelve tranches and includes milestones related to FSD subscriptions, aiming to make him the first trillionaire [3]. - One of the key milestones requires Musk to achieve over 10 million active FSD subscriptions [4]. Group 3: Challenges to Achieving Goals - The current FSD adoption rate is around 15%, indicating that Tesla needs to significantly expand its customer base to meet the 10 million subscription target [5]. - Tesla's declining sales present another challenge, despite the Model Y being the best-selling EV in the U.S. with over 357,528 units sold in 2025 [6]. - The company has faced increased competition, notably from BYD, which surpassed Tesla as the world's leading EV maker last year [7]. Group 4: Competitive Landscape - Competitors like Nvidia and Rivian are advancing their self-driving technologies, with Nvidia's new Alpamayo technology being described as a significant development in the autonomous vehicle space [8][9]. - Rivian offers its self-driving technology at a lower subscription price of $50 per month, which could further intensify competition for Tesla [9]. Group 5: Strategic Implications - The introduction of a $99/month FSD subscription could be a strategic move for Tesla to democratize access to self-driving technology and strengthen its market position amid rising competition [10].