Tesla Bull Suggests EV Giant Break Out AI Revenue And Profit As 4th Segment In Earnings Reports To Grab More Investor Eyeballs
Portfolio Pulse from Anan Ashraf
Gary Black, Future Fund Managing Partner, suggests Tesla Inc (TSLA) should report AI revenue and profit as a separate segment in its earnings to highlight its AI initiatives, potentially enhancing its valuation. He estimates FSD revenue at $1B, a fraction of Tesla's total revenue, but believes a dedicated AI segment could attract more investor interest. Additionally, Black comments on Tesla's recent stock price increase, attributing it to announced price hikes for the Model Y in the U.S. and Europe, rather than just the new FSD version, suggesting this could improve Tesla's earnings and margins.
March 19, 2024 | 6:22 am
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NEUTRAL IMPACT
The Future Fund Active ETF (FFND), managed by Gary Black, holds 1,916 Tesla shares, making it the 15th largest holding in the fund. Black has recently reduced Tesla holdings due to concerns over its long-term earnings power.
The mention of FFND's holdings in Tesla shares and its position change within the fund's portfolio indicates a neutral short-term impact. The reduction in Tesla holdings by Gary Black reflects concerns over Tesla's long-term earnings power but does not directly suggest an immediate impact on FFND's stock price.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Gary Black suggests Tesla should add an AI segment to its earnings reports to better showcase its AI initiatives, potentially enhancing its valuation. He also attributes Tesla's recent stock price increase to announced price hikes for the Model Y.
Introducing an AI segment in earnings could attract more investor attention to Tesla's AI projects, potentially increasing its stock valuation. The recent price hikes for the Model Y, as mentioned by Black, are likely to improve earnings and margins, contributing to a positive short-term impact on TSLA's stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100