Tesla Bull Gary Black Reaffirms Elon Musk's Company 'Best Positioned To Capitalize' On EVs And Autonomous Driving, But There's A Catch
Gary Black, a Tesla bull, believes Tesla Inc. is well-positioned to benefit from the growing demand for electric vehicles (EVs) and autonomous driving. He noted that Tesla's strategy of offering more affordable models is reminiscent of past price cuts, but he remains optimistic about the company's long-term prospects. Despite challenges, including trademark issues for its "Robotaxi" concept, Black asserts that Tesla is poised to capitalize on EV adoption and autonomy trends. TSLA shares rose 1.12% in pre-market trading, currently valued at $288.02.
Gary Black says Tesla Inc. TSLA will capitalize on the growing EV adoption among drivers, as well as increasing demand for self-driving vehicles.
What Happened: Quoting a post on social media platform X, which asked Black's views on Elon Musk's EV giant's current trajectory, he shared his thoughts on Thursday.
"TSLA's more affordable car strategy seems deja vu 2023-2024 – price cuts funded by cost cuts with no volume growth," he said as Tesla is offering cheaper variants of its models in the U.S. He added that the Austin robotaxi launch in June held an "asymmetrical risk/return."
However, the investor also shared that he was optimistic about the company's future. "Long term we like the $TSLA story." He said before adding, "As EV adoption and demand for autonomy increases, $TSLA remains the best positioned to capitalize on these two megatrends,"
Why It Matters: Tesla has been teasing the arrival of its Robotaxi in June, with CEO Musk confirming that there would at least be 10-20 Model Y robotaxis in Austin on launch day.
Tesla has also rolled out its robotaxi in limited runs restricted to employees in cities like Austin and San Francisco, where it has clocked more than 15,000 miles and 1,500 trips.
Elsewhere, the company has touted its self-driving capabilities with Musk expressing optimism in the brand's FSD (Full Self-Driving) tech and went as far as to say that manually driven cars will become obsolete in the future.
However, Musk's robotaxi ambitions are grappling with hurdles as the USPTO or U.S. Patent and Trademark Office refused to grant the company trademarks for the terms "Robotaxi" as well as "Cybercab."
Price Action: TSLA gained 1.12% in Pre-market trading, with a current value of $288.02, according to Benzinga Pro data.
