Fund Manager Substantially Reduces Tesla Holding, Citing 2 Reasons That Undermine His Positive View
Portfolio Pulse from Shanthi Rexaline
Gary Black of Future Fund has significantly reduced the fund's Tesla, Inc. (TSLA) holdings, citing overly optimistic delivery estimates and potential for further price cuts due to high inventories. The Future Fund Active ETF (FFND) now holds 1,916 Tesla shares, decreasing Tesla's portfolio weighting from 5.07% to 2.93%. Despite a slight premarket rise, Tesla's stock has experienced notable weakness, with concerns that further declines may occur until the first-quarter deliveries report. Black suggests Tesla's issues are largely self-inflicted, emphasizing the need for better communication and marketing to boost EV adoption.
March 08, 2024 | 1:32 pm
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NEGATIVE IMPACT
Tesla's stock may face short-term pressure due to concerns over delivery estimates and potential price cuts, as highlighted by fund manager Gary Black.
Gary Black's decision to reduce Tesla's stake in FFND's portfolio due to concerns over delivery estimates and potential price cuts could lead to short-term selling pressure on TSLA stock. His influence and the rationale behind the decision may impact investor sentiment.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
The Future Fund Active ETF (FFND) has significantly reduced its Tesla holdings, impacting its portfolio composition and potentially its performance.
While the reduction in Tesla's stake impacts FFND's portfolio, the direct short-term effect on FFND's stock price is uncertain. The move reflects portfolio management decisions rather than fundamental changes in FFND itself.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 75