Gary Black, Managing Partner of The Future Fund LLC, shared insights on social media platform X regarding his investment performance since January 2022.
What Happened: Black claimed that Tesla Inc TSLA had been his largest negative contributor during this period, noting a decline of 34% compared to the Nasdaq-100 Index, which rose by 23%.
Black’s post included specific figures to illustrate the stark contrast in performance. On Jan. 1, 2022, Tesla’s stock was valued at $342.32. As of now, it is trading at $260.48. In contrast, the Nasdaq-100 started at 15,592 points and has climbed to 20,232.87.
Black also made a humorous remark regarding his position in Tesla, stating, “We're long $TSLA moron,” implying that despite the stock’s underperformance, he maintains a bullish stance on the company.
This discussion was prompted by a user on X who suggested that critics of Tesla should reconsider their positions. The user wrote, “Now .. every $TSLA short in disguise who tried to punk or doubted @TeslaBoomerMama apologize, pronto Or send her flowers. Whichever you prefer.”
Ale𝕏andra Merz, known as TeslaBoomerMama, is a prominent supporter of Tesla and a vocal advocate for retail shareholders. She has gained a following for her passionate defense of the company and its CEO, Elon Musk.
Black’s The Future Fund Active ETF FFND has posted impressive year-to-date returns of 16.84%. Its top holdings include NVIDIA Corp NVDA, which constitutes 8.46% of the fund and has surged by 191.49% this year; Alphabet Inc. Class A GOOGL at 8.00% with a gain of 17.77%.
Eli Lilly and Co LLY, the third-largest holding at 50.51%; Salesforce Inc CRM at 11.96%; and Netflix Inc NFLX at 61.06%.
Tesla accounts for 4.10% of the ETF's assets.
Additionally, Advanced Micro Devices, Inc. AMD has delivered returns of 10.72%, while Uber Technologies Inc UBER has gained 34.26%. Palo Alto Networks Inc PANW shows a year-to-date return of 26.19%, and DoorDash Inc DASH has risen by 58.81%.
Why It Matters: Despite Tesla’s recent performance, Black has been a vocal supporter of the company. He praised Tesla’s third-quarter earnings as a “clean beat” and highlighted the company’s impressive performance across key metrics, which led to a 12.10% surge in the stock’s value in after-hours trading.
However, Black previously raised concerns about Tesla’s earnings call, particularly regarding the company’s autonomous driving capabilities and vehicle profitability targets.
Despite these concerns, Tesla’s third-quarter earnings exceeded estimates and showed improving margins, which was well-received by analysts.
Price Action: Tesla stock closed at $260.48 on Thursday, representing a significant increase of 21.92% for the day. In after-hours trading, the stock dipped 1.17%. Year to date, Tesla’s stock has risen by 4.85%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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