Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Future Fund LLC Managing Partner Gary Black Defend his company Tesla company (Nasdaq:TSLA) investment strategy amid criticism from Tesla bulls, focusing on a disciplined approach to position management Instead of short term trading.
What happened: Black revealed that his fund’s average buying price of Tesla shares since early 2023 was $162, while its average selling price was $252. The revelation came as the Future Fund recently trimmed its Tesla position at $351, following a 150% rally from April lows.
Don’t miss:
“This is what professional investors do — buy low, sell high,” Black said on X, addressing criticism from Tesla enthusiasts. “No one has ever gone bankrupt by taking profits.”
The Future Fund began reducing its position in Tesla in the fourth quarter of 2022 when it represented 12.2% of the portfolio, following Tesla’s 20% reductions in electric vehicle prices.
The position now stands at 4.11% as of November 15, making Tesla… Fifth largest holding in Active Future Fund ETF (New York Stock Exchange:FFND), behind Nvidia company (Nasdaq:NVDA), Alphabet company (Nasdaq:Google), Salesforce Company (New York Stock Exchange:Customer relationship management), and Netflix company (Nasdaq:NFLX).
See also: “Scroll to UBI” – Deloitte’s fastest growing software company allows users to make money on their phones. You can invest today for just $0.26 per share with a minimum of $1,000.
Why does it matter?: Black noted that Tesla’s earnings estimates have dropped 59% since the price cuts, noting that competitors have matched the cuts, resulting in minimal volume growth. Despite the recent rally, Tesla stock has underperformed the NASDAQ 100 by 32 percentage points over the past three years.
The investment expert expressed concern about growing polarization within the Tesla investor community, noting that moderate voices face criticism for discussing potential risks.
“In World
The debate comes amid growing interest in Tesla, with recent headlines highlighting the president-elect’s Cybertruck appearance. Donald TrumpCars procession during the visit SpaceXThe Starbase facility likely signals new opportunities in the government and security sectors.
Price action: Tesla stock closed at $352.56 on Friday, up 3.80% on the day. Hours later, the stock rose by 0.26%. Year-to-date, Tesla stock has risen 41.92%, according to Data from Benzinga Pro.
Read next:
Image via Shutterstock
Disclaimer: This content was produced in part with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
This article Gary Black defends Tesla price at $351: ‘No one has ever gone bankrupt by taking profits’ amid stock rally 150% since April Originally appeared on Benzinga.com