Future Fund's Gary Black Sells All Tesla Shares Citing Overvaluation

Several prominent investors have recently sold off their Tesla stock amid concerns about the company's valuation and declining fundamentals. Gary Black of Future Fund sold all his Tesla shares, citing an overvalued stock trading at a high price-to-earnings ratio and expecting a decline in vehicle deliveries and risks associated with Tesla's upcoming Austin robotaxi launch. Similarly, billionaire Daniel Loeb's hedge fund, Third Point, fully exited its Tesla position within a short time frame, signaling lost confidence. Investor A.J. Button highlighted Tesla's deteriorating competitive position, declining earnings, and significant sales drops in key markets like the EU, exacerbated by Elon Musk's controversial affiliations. Despite recent stock price rallies driven by Musk's shifting priorities, these headwinds and high valuation multiples have prompted some experts to recommend caution. Overall, these developments reflect growing skepticism about Tesla's near-term growth prospects despite long-term ambitions tied to autonomous driving and AI.