Fund Manager Gary Black Flags Doubts With Tesla Cybercab Design, Highlights Contrasting Consumer Preferences

Black said in a post on X that the Cybercab is "wholly inconsistent” with the way consumers buy cars.

• Even if Tesla were to take 50% of the two-seat car market, actual sales might only total 80,000 units in the U.S. and 400,000 globally, Black said. 
• Further, customers would prefer autonomy as an option and not as default, he said.
• Tesla, however, is contemplating 2 million/ year production for Cybercab at full capacity.

The Future Fund managing partner Gary Black on Thursday said that Tesla’s (TSLA) focus on autonomous driving and its dedicated two-seater robotaxi product, called Cybercab, is "wholly inconsistent” with the way consumers buy cars.

TSLA shares traded over 2% lower at the time of writing.

On Wednesday, the company reported a year-on-year decline in fourth quarter earnings, although it beat Wall Street expectations.

2-Seat Design Raises Concerns

“While 90% of miles traveled are for 1-2 passengers, only 1% of actual global consumer automotive purchases are for vehicles configured for just 2 passengers,” Black said in a post on X.

“When buying a car, consumers build in extra seating capacity for kids, extra passengers, or baggage,” he added.

The fund manager noted that the 2-seat auto segment is now dominated by sports cars like Corvette and Ferrari. Even if Tesla were to take 50% of the market, actual sales might only total 80,000 units in the U.S. and 400,000 globally, he said.  

Tesla, however, is contemplating 2 million/ year production for Cybercab at full capacity, he added.

Autonomy As A Choice

Further, customers would prefer autonomy as an option and not as default, Black said.

“Elon said on the call that Cybercab would not come with a steering wheel or pedals, and reiterated that either Cybercab drives itself or it doesn’t drive at all.  IMHO, ignoring consumer preferences in favor of engineering efficiency will prove to be a major strategic mistake by $TSLA,” he wrote.

The company is looking to start production of the Cybercab in April. The company also announced on Wednesday that the company is halting production of its more premium Model S and X vehicles in light of the pivot into autonomy.

Musk, however, said that the company would continue to produce the Cybertruck.  

Black said that it is a “mistake” to keep Cybertruck which has negative brand equity and sold 10,000 units last year.

Compared to Cybertruck, Model S and X have strong repeat brand loyalty and are highly profitable, he added. “Why not discontinue CT and convert S/X to be fully autonomous?” he posed.

In 2025, deliveries of the Tesla Model S, X and Cybertruck cumulatively came in at 50,850 units, accounting for just about 3% of the company’s overall 1.63 million deliveries.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TSLA stock fell from ‘neutral’ to ‘extremely bearish’ territory over the past 24 hours, while message volume rose from ‘normal’ to ‘high’ levels.

TSLA stock has gained about 9% over the past 12 months. 

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