Gary Black Believes These Are The Five Things That Could Initiate A Tesla Rally

Gary Black, managing partner at The Future Fund LLC, listed five points that could push Tesla Inc. (TSLA) stock toward a rally from current levels.

Black recommended the removal of safety monitors from robotaxi services and launching a more affordable vehicle. Other recommendations include launching a $50,000 pickup truck, expanding robotaxi services nationally, and advertising the company’s autonomous driving efforts.

The investor exited Tesla stock in May at $358. Black said that The Future Fund is not looking to re-enter anytime soon, as the firm would consider re-entry only at $220 to $240 levels.

On Stocktwits, retail sentiment around TSLA stock stayed within ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

Black explained that the removal of safety monitors from robotaxis will show the management’s confidence that they have achieved unsupervised autonomy, allowing the company to compete against other players in the autonomous vehicle segment, such as Waymo, Zoox, and Baidu. He also recommended that the company expand its robotaxi services nationally, but noted that, given regulatory hurdles, Tesla cannot likely even make its robotaxis available to 50% U.S. population by year-end.

Black also wants Tesla to launch two new vehicles, including a small hatchback or SUV priced between $30,000 and $35,000, and a $50,000 pickup truck. The cheap car should have a form factor different from Tesla’s current cheaper models, Model Y and Model 3, while also being priced lower, Black said. Likewise, a cheaper pickup than Cybertruck, enabling the company to capture merely 5% of the pickup market, will allow Tesla to expand its total addressable market and add volume, he said.

“We would prefer TSLA end money-losing Cybertruck but that’s likely an emotional bridge too far for Elon,” The Future Fund managing partner wrote on X.

Black also pushed for Tesla to launch global advertising efforts to showcase its autonomous driving capabilities. “A $100M ad campaign would cost TSLA $.03/share in annual earnings and both drive FSD take rates higher and sell more Teslas,” he said. Tesla currently does not resort to traditional advertising.

TSLA stock is down by 17% this year but up by about 60% over the past 12 months.

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