Tesla Bull Recommends A 'Great Deal' For Elon Musk's EV Giant As It Grapples With Slowing Sales Growth
Portfolio Pulse from Shanthi Rexaline
Gary Black, a Tesla bull and Future Fund's Managing Partner, suggests Tesla Inc. (TSLA) should invest in advertising to boost its volume growth, which has slowed due to higher interest rates and ineffective price cuts. Black proposes a $100M ad spend instead of $1B in price cuts, leveraging celebrities for free promotion of the Cybertruck while advertising other products to expand Tesla's market. Tesla's stock has fallen over 31% year-to-date, with no expected reprieve until a sub-$30,000 vehicle launch. Future Fund ETF (FFND) has recently reduced its Tesla holdings.
March 20, 2024 | 1:10 pm
News sentiment analysis
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NEGATIVE IMPACT
Future Fund ETF, managed by Gary Black, has substantially trimmed its position in Tesla recently.
The reduction in Tesla's stake by FFND could indicate a lack of confidence in Tesla's short-term performance, potentially influencing investor sentiment towards both Tesla and FFND.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Gary Black suggests Tesla should invest $100M in advertising to boost volume growth, leveraging celebrity endorsements for the Cybertruck. Tesla's stock has fallen over 31% year-to-date.
Black's suggestion for advertising could be seen as a positive strategy to revitalize Tesla's volume growth and market expansion, potentially improving investor sentiment and stock performance in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90