Future Fund Managing Partner Gary Black has issued a stark warning to those betting against Tesla Inc. TSLA stock.
What Happened: Black took to X to express his views on Tesla’s future, emphasizing the potential of the electric vehicle market and Tesla’s position within it. He predicted a significant increase in Tesla’s Total Addressable Market with the launch of a $25,000 vehicle in 2025 and the potential of Tesla’s autonomous driving technology to be worth $5 trillion.
“Anyone short $TSLA needs to have their head examined.” Black wrote.
Black also mentioned Elon Musk‘s plans to use the knowledge gained from Tesla’s Robotaxi project to launch Optimus robots, which could potentially give Tesla a market cap of $20-$25 trillion.
Black quoted Musk’s post, where the Tesla CEO warned that once Tesla solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated, “Even Gates.”
Musk’s tweet was in reference to one of the most famous Tesla short sellers, Microsoft co-founder Bill Gates.
Why It Matters: Black’s comments come at a time when Tesla’s stock is on the rise. The company’s second-quarter deliveries report ignited a stock rally, with the stock hitting resistance levels that had previously been a peak. This led to speculation about how far the rally would go.
Despite being a popular stock to short, Tesla’s stock has been performing well, Wedbush analyst Dan Ives raised Tesla’s price target to $300, citing the company’s AI potential, which he believes could be worth over $1 trillion. This reflects a significant increase from the previous target of $275.
Price Action: Tesla Inc. shares closed at $231.26 on Tuesday, up $21.40 or 10.20% for the day. In after-hours trading, the stock dipped 0.035%. Year to date, Tesla's stock has decreased by 6.91%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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