Tesla Analyst Explains Stock's 12% Post-Earnings Pullback: 9 Catalysts That Can Stall The Sell-Off

Tesla, Inc. TSLA shares have fallen about 12% since the electric vehicle maker reported its second-quarter results.

What Happened: The stock weakness reflected investors' concern regarding further margin erosion due to potential price cuts, said Future Fund's Gary Black. CEO Elon Musk left open the possibility of further price cuts on the second-quarter earnings call, blaming it on a rising rate environment.

Black said the price cuts are unlikely to be supported by a decline in the cost of goods sold.

Thursday's weakness can partly be blamed on a report that said the company overstated EV range and the regulatory risks surrounding its full-self driving software, the fund manager said.

The spike in the 10-year Treasury yield by 13 basis points to 4% on Thursday on the back of better-than-expected second-quarter GDP data did not help matters any further, he added.

“Rising rates hurt long-duration growth stocks most,” Black said.

See Also: Best Electric Vehicle Stocks

What's Next: Black, however, is bullish on Tesla. Tesla is the second biggest holding of Future Fund's actively-managed Future Fund Active ETF FFND exchange-traded fund.

The fund manager is very excited about Tesla's upcoming Cybertruck. He listed the following as the key catalysts that could give the sagging stock a lift:

• Gross margin stabilizing in the third quarter
• Model 3 refresh/Highland launch in the third quarter
• Cybertruck deliveries beginning in the fourth quarter
• Federal Reserve pivoting on interest rates
• $7,500 EV instant rebate in 2024
• Twitter turning cash flow positive in 2024
• Initiation of a $10 billion buyback in 2024
• FSD Alpha version 12 L4 release in 2024
• Launch of a compact $25,000-$35,000 car in 2025

Black has six months to a one-year price target of $320 for Tesla stock

Tesla ended Thursday's session down 3.27% at $255.71, according to Benzinga Pro data.

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