Is Tesla Stock About To Take Off? Fund Manager Cites 2 Factors That May Allay Key Investor Concern
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) shares increased by over 2.50% on Thursday, despite concerns about potential volume decline and margin erosion. Fund manager Gary Black from Future Fund addressed these concerns, stating Tesla is unlikely to further cut prices as it doesn't lead to incremental volume due to competitors matching price cuts. He also anticipates an increase in full-self driving (FSD) take rates as it nears Level 4 autonomy, suggesting auto gross margins may have bottomed out. However, Tesla's recent price adjustments and the controversy surrounding its FSD system, along with no new vehicles expected in the near term, could still pose challenges for the company.

February 15, 2024 | 10:44 am
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POSITIVE IMPACT
Tesla's stock rebounded over 2.50% despite concerns about volume decline and margin erosion. Gary Black's comments on price strategy and FSD advancements may positively impact investor sentiment, but challenges like price adjustments, FSD controversy, and lack of new models could limit short-term growth.
Gary Black's optimistic view on Tesla's pricing strategy and FSD advancements could improve investor sentiment, potentially supporting the stock price in the short term. However, ongoing price adjustments, the controversy surrounding FSD, and the absence of new vehicle launches could dampen the positive impact. The recent price rebound reflects a mix of optimism and existing challenges.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 100