'Should Have Sold Our Entire $TSLA Position,' Says Fund Manager, Following EV Giant's Coordinated Global Price Cuts Over Weekend
Portfolio Pulse from Shanthi Rexaline
Tesla, Inc. (NASDAQ:TSLA) implemented global price cuts for its electric vehicles, prompting criticism from Future Fund's co-founder, Gary Black, who regrets not selling the firm's entire Tesla position. Black criticized the price cuts' effectiveness, Tesla's strategy, and the unrealistic expectations of Tesla bulls. He adjusted his Tesla earnings estimate and price target downwards due to the price cuts, estimating a significant annual revenue and earnings per share impact. Tesla's stock price fell to its lowest level since late-January 2023.
April 21, 2024 | 10:10 pm
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Tesla's global price cuts criticized by Future Fund's Gary Black, leading to lowered earnings estimates and price target. Tesla's stock price fell to its lowest since late-January 2023.
The negative sentiment from a significant investor and the adjustment of earnings estimates due to Tesla's price cuts could lead to short-term bearish sentiment among investors. The criticism from a well-regarded fund manager, combined with the anticipated impact on Tesla's revenue and earnings per share, suggests a negative short-term impact on Tesla's stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100