Future Fund LLC‘s Managing Director, Gary Black, thinks Tesla Inc. TSLA CEO Elon Musk‘s post expressing regret over comments on U.S. President Donald Trump could help repair relations between the two.
What Happened: “TSLA now up +15% (vs NDX +2%) since last week’s extraordinary falling out between Elon and President Trump,” Black said in a post on social media platform X on Wednesday.
Calling Musk’s post expressing regret about his comments on the president an apology, the investor noted that it “should formally repair the relationship, although we doubt the two will again become billionaire bros again,” he said.
Black then said that the apology should “encourage Trump to not work against Elon” on both the Zero Emission Vehicle (ZEV) credits, as well as putting in place Federal regulations on autonomous vehicles.
He then shared his thoughts on the apology’s impact on Musk’s Cybercab ambitions.
“Elon likely realized that Tesla needs help with new EV and autonomous regulations, especially with being able to mass produce the Cybercab,” the investor said and outlined how the Cybercab isn’t street-legal in the U.S. due to the vehicle not having any pedals or a steering wheel.
He concluded the post by drawing parallels between the stock performances of Tesla and rivals like Uber Technologies Inc. UBER and BYD Co. Ltd. BYDDY BYDDF. “Year-to-date TSLA (-19%) still badly lags BYDDY (+60%), UBER (+43%),” he said.
Why It Matters: The investor highlights how Musk’s post expressing regret, as well as Tesla stock surging close to its value before the falling out between Trump and the Tesla CEO, highlights the easing of tensions between the pair.
This is also important considering Tesla is gearing itself up for rolling out the Robotaxi to the public on June 22 in Austin. However, Musk has said that the date is still tentative.
Interestingly, Future Fund offloaded its entire Tesla position recently as the firm sold its remaining shares in the EV giant, which Black said was due to the valuation becoming “disconnected from underlying fundamentals.”
Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
Read Next:
Photo courtesy: Ken Wolter / Shutterstock.com
