Investor Gary Black, who is a managing partner at The Future Fund LLC, has outlined his take on why Tesla, Inc. has been declining for the past eight weeks.
On Thursday, the investor shared why he thought TSLA stock was on the decline in a post on the social media platform X. He said the stock was declining after analysts cut earnings estimates following the automaker’s “disappointing” first-quarter 2026 delivery figures.
“TSLA P/E being re-rated down as investors question whether TSLA can scale its robotaxi business,” Black said in the post, sharing that the Robotaxi business was the “primary driver of its 2026 P/E of 180x.” The investor also compared Tesla’s P/E with other Magnificent 7 companies like Apple Inc., Microsoft Corp., Amazon.com Inc. and more, all of which have a P/E of under 30x.
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He then said that investors in the EV giant were “deluding themselves” into thinking that Tesla was “on the verge of solving for generalized unsupervised autonomy,” and that P/E ratios and delivery figures do not matter. “EVs still comprise 70% of Tesla profits,” the investor said.
The investor then said that he believed Tesla had the “best full self driving product on the market,” but lamented the lack of marketing, which held back its awareness among consumers. Full Self-Driving (FSD) would remain a “niche product” until the automaker “changes its strategy of using X promoters and word of mouth,” he said.
Black has, in the past, questioned Tesla’s marketing strategy, urging the automaker to market its products better, suggesting the automaker take a page out of Apple’s marketing strategy.
Reasons $TSLA is headed for an eighth straight week of stock price declines: 1/ FY2026-2030 earnings estimates continue to fall as analysts cut EV delivery ests following the disappointing 1Q delivery results. 2/ TSLA P/E being re-rated down as investors question whether TSLA…
— Gary Black (@garyblack00) April 9, 2026
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The Elon Musk-led EV giant is reportedly working on introducing two new models in the company’s lineup, with one of the models being targeted towards the affordable EV segment. The unnamed model will likely be produced in China and Tesla also has plans to introduce it in Europe and the U.S.