Gary Black, an analyst for The Future Fund, announced the complete divestment of the firm's Tesla (TSLA) shares, marking the first time since 2021 it holds no stake in the company. Black's skepticism stems from concerns over Tesla's elevated price-to-earnings ratio, disappointing delivery results, and uncertain projections for upcoming projects, including the much-anticipated Robotaxi. He believes the stock's current valuation is disconnected from its fundamentals, projecting a price target of $310 compared to a selling price of $358.
"The Future Fund sold its holdings at $358 per share. The firm's current price target is at $310, and it will remain there based on our forecast of 2030 Tesla volumes of 5.4m and 2030 Adj EPS of $12."
"The main concern Black and The Future Fund have is that TSLA now sells at a 2025 P/E of 188x as earnings estimates continue to fall driven by weak YTD deliveries, including weak April results."
Collection
[
|
...
]