Future Fund’s Gary Black said in a X post on Tuesday that shorting stocks is “no picnic.”
- Black noted that EV sales are growing at 20-25% per year and the company’s marketing issues are “easy to fix” with a few changes and a new vehicle launch.
- According to Black, Tesla needs to launch a conventional pickup truck, advertise its vehicles, and educate its customers on the benefits of its full self-driving driver assistance technology.
- In December, Michael Burry also clarified that he is not short on Tesla despite deeming the stock as “ridiculously overvalued.”
The Future Fund’s Managing Partner Gary Black on Tuesday said that he would not short Tesla (TSLA), terming it “too good a company in a thriving business.”
Black said in an X post on Tuesday that shorting stocks is “no picnic.”
“We short stocks with businesses facing secular demand decline or permanent market share loss and where we perceive the company lacks the tech, brand, distribution, or management depth to turn it around,” Black said. “We won’t short a company just because it looks expensive - instead we just won’t own it.”
The fund manager previously held a stake in Tesla but sold it in entirety last year, citing excessive valuation and high price-to-earnings ratio.
Black Flags Easy Fixes For Tesla
Black noted that EV sales are growing at a 20-25% per year pace and the company’s marketing issues are “easy to fix” with a few changes and a new vehicle launch.
According to Black, Tesla needs to launch a conventional pickup truck, advertise its vehicles, and educate its customers on the benefits of its full self-driving (FSD) driver assistance technology.
Currently, Tesla sells only one truck called the Cybertruck which has pushed customers away owing to its stainless steel design and high price point. The company also doesn’t invest in traditional advertising, instead relying on word-of-mouth popularity.
As for FSD, while Tesla and its CEO Elon Musk have previously voiced optimism for the company enabling fully autonomous driving with the technology, its uptake has been slow.
“We fervently believe that $TSLA solving for unsupervised autonomy will sell more Teslas,” Black said.
Tesla started robotaxi operations in Austin in 2025 with a handful of Model Y vehicles equipped with FSD and a safety monitor in the front seat. In December, Musk said that the company has started testing the vehicles without a safety driver, reaffirming investor confidence that Tesla is nearing completely unsupervised vehicle autonomy.
Black Echoes Burry
Black is not the first to stay clear of shorting Tesla in light of high valuation.
In December, The Big Short’s Michael Burry also clarified that he is not short on Tesla despite deeming the stock as “ridiculously overvalued.”
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around TSLA stayed within the ‘extremely bearish’ territory over the past 24 hours while message volume rose stayed at 'high' levels.
TSLA stock has gained 5% this year.
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