Investor Gary Black, who is a managing partner at The Future Fund LLC, has outlined his take on why Tesla, Inc. (NASDAQ:TSLA) has been declining for the past eight weeks.
Disappointing Deliveries
On Thursday, the investor shared why he thought TSLA stock was on the decline in a post on the social media platform X. He said the stock was declining after analysts cut earnings estimates following the automaker’s “disappointing” first-quarter 2026 delivery figures.
“TSLA P/E being re-rated down as investors question whether TSLA can scale its robotaxi business,” Black said in the post, sharing that the Robotaxi business was the “primary driver of its 2026 P/E of 180x.” The investor also compared Tesla’s P/E with other Magnificent 7 companies like Apple Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN) and more, all of which have a P/E of under 30x.
He then said that investors in the EV giant were “deluding themselves” into thinking that Tesla was “on the verge of solving for generalized unsupervised autonomy,” and that P/E ratios and delivery figures do not matter. “EVs still …
This post was originally published here
