Tesla Bull On Company's Price Cutting Strategy: 'Thought By Now Elon Would Learn From His Mistake But Maybe He'll Keep Doing The Wrong Thing'
Portfolio Pulse from Anan Ashraf
Gary Black, a Tesla Inc (NASDAQ:TSLA) investor, criticized the company's strategy of cutting prices to boost sales, expressing disappointment in CEO Elon Musk's decision-making. Black argues that price cuts are not rational if competitors match them, leading to no volume benefit for Tesla. Despite a 102% rise in Tesla's stock price over the past year, Black points out that the stock slumped 65% in 2022 when the company began offering discounts. He also notes that Tesla's stock underperformed the Nasdaq 100 index over two years.
January 20, 2024 | 6:20 am
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Gary Black's criticism of Tesla's price cutting strategy may create negative sentiment among investors, potentially affecting the stock's short-term performance.
Gary Black's comments, given his status as an investor and managing partner at Future Fund, could carry weight with other investors, potentially leading to negative sentiment and a short-term dip in Tesla's stock price. However, the actual impact will depend on broader market reception and Tesla's performance metrics.
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