Tesla Bull Gary Black Says Recalls Won't Hurt Valuation, But He's Worried About Something Else: '...One Can't Ignore The Numbers'
Portfolio Pulse from Anan Ashraf
Gary Black, a Tesla investor, believes the recent recall of over 2 million Tesla vehicles for a software update related to Autosteer will not impact Tesla's valuation. He states that past OTA updates and NHTSA recalls have not affected Tesla's stock price significantly. However, Black is concerned about Tesla's brand equity, which he feels has taken a hit this year. He suggests that Tesla should focus on advertising to convey its benefits over competitors rather than cutting prices, which can harm margins. The term 'recall' has been debated, with some suggesting a change to 'software recall' to better reflect the nature of the issue.
December 14, 2023 | 5:42 am
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Gary Black, a prominent Tesla investor, has dismissed concerns that the recent recall for a software update will affect Tesla's valuation, based on historical precedence. However, he expresses concern over Tesla's brand equity and suggests increased advertising to maintain brand strength.
The recall is not expected to have a lasting impact on Tesla's stock price according to investor Gary Black, who cites previous instances where recalls did not affect valuation. However, the concern about brand equity could indicate a need for strategic marketing, which may influence investor sentiment in the short term. The debate over the term 'recall' is unlikely to have a significant impact on the stock price.
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