Tesla Stock Lags Apple Because Of ‘Communications Problem,’ Says Investor Gary Black

Tesla stock has not moved in five years because of a lack of credibility stemming from “overpromise and hyped-up expectations,” Black said.

• Black said Tesla must divulge data on how many customers keep their full self-driving (FSD) subscriptions 3-6 months after the free trial of the technology ends.
• The comment comes on the heels of Tesla confirming earlier this week that over 75% of deliveries in North America in the third quarter included a sign-up for a paid FSD subscription at the time of delivery.
• According to Black, the 75% is “clearly inflated.”

EV giant Tesla Inc (TSLA) has a “communications problem,” according to investor Gary Black, managing partner of The Future Fund LLC, who argued on Friday that the company’s approach undermines credibility despite technically strong products.

“I’ve said for years that TSLA’s Achilles’ heel is poor communications. $AAPL does not have a credibility problem,” Black said in a post on X, highlighting that over the past year Apple gained 33%, while Tesla fell 17%. Over five years, Apple advanced 133% while Tesla was up only 9%, he added.

Black further linked the alleged communications issue to longer-term effects, stating that Tesla stock has not moved in five years because of a lack of credibility stemming from “overpromise and hyped-up expectations.”

Black Calls TSLA’s FSD Data ‘Inflated’

Black said Tesla must divulge data on how many customers keep their full self-driving (FSD) subscriptions 3-6 months after the free trial of the technology ends, instead of immediately after the free trial period.

The comment comes on the heels of Tesla confirming earlier this week that over 75% of deliveries in North America in the third quarter included a sign-up for a paid FSD subscription at the time of delivery. According to Black, the 75% is “clearly inflated.” RBC Capital analyst Tom Narayan previously pegged FSD attach rate at 30-40% on a paid basis.

Black’s Consistent Critique Of TSLA Communications

Black’s Friday comments continue a consistent critique. He has previously argued that Tesla has not acted like a market leader by educating non-EV owners on benefits such as convenience, lower costs, performance, and technology, and has instead leaned on discounts or price cuts.

He has also called for a more proactive public relations strategy, noting that journalists often cite Tesla’s lack of engagement and that the media will run one-sided stories without company-provided context. Ahead of past earnings periods, Black has urged Tesla leadership to improve credibility by avoiding outlandish promises and bringing in experienced communications support. In other posts, he has warned that allowing products to speak for themselves risks wasting advantages in the vehicle autonomy race.

Meanwhile, Tesla Seeks EU, China Approval Of FSD

Earlier this week, during Tesla’s third-quarter earnings call, CEO Elon Musk pegged FSD as a key demand driver and expressed optimism for approval of the technology across the EU within a few months as part of a push for approval across markets. The company also said that it is looking forward to approval for the technology in China.

As per the company, there are over 1.7 million paid customers for FSD globally. The technology automates several aspects of driving but is yet to enable fully autonomous driving in customer-owned vehicles.

How Did TSLA Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock fell from 'bullish' to 'bearish' territory over the past 24 hours, while message volume stayed at 'high' levels.

TSLA stock has dropped 17% year-to-date. 

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