Tesla mega-bull Gary Black cuts stake: What’s going on?
Investing.com — Gary Black has typically been a vocal supporter of Tesla (NASDAQ:TSLA), but a recent filing has revealed that the Chicago-based portfolio manager has cut his fund's position in the electric vehicle (EV) giant.
Who is Gary Black?
Black, a former Aegon (NYSE:AEG) Asset Management chief executive, opened The Future Fund LLC in 2021. It oversees two vehicles with a total of $8.8 million under management, a profile by financial services group Morningstar showed.
Tesla has long been one of the fund's biggest holdings. However, according to a fourth-quarter Securities and Exchange Commission filing dated on Feb. 14, The Future Fund slashed its stake in Tesla by 1% versus the prior three-month period to 104,450 shares. As of Dec. 31, the position was valued at just under $26 million.
Black defended the move in a series of posts on social media platform X last week, saying that Wall Street estimates for Tesla deliveries in the first quarter and in 2024 are «way above where they are likely to come in.»
One-time headwinds to Tesla's performance in the current quarter are also piling up, he noted, including a suspected arson attack on the company's factory in Berlin and supply disruptions in the Red Sea region that stem from ongoing violence in the Middle East.
Yet Black said the fund continues to own Tesla because it is «best positioned» to take advantage of an expected global surge in adoption of EVs by the end of the decade.
«We believe [Tesla] has the best EV products on the market,» Black wrote.
More Tesla price cuts on the horizon?
Tesla has warned that it expects to see «notably lower» sales growth in 2024 versus the prior year due to intensifying competition and stalling demand from cost-conscious
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