Gary Black Says Tesla's 14% Post-Earnings Selloff Shows Investors Took Management's 'Caution About Not Sc

Tesla Inc (NASDAQ:TSLA) investor Gary Black said Thursday the company’s post-earnings selloff reflected investors reassessing expectations for its autonomous driving ambitions after management struck a cautious tone on scaling unsupervised self-driving.

Market Was Too Optimistic On Autonomy

Black, managing partner at The Future Fund LLC, said on X that Tesla’s 14.5% decline marked its worst trading day since March 2025, adding that investors “took to heart management’s caution about not scaling up” until those vehicles demonstrated it was safe to do so.

“We have long argued that at a 180x forward P/E the market was way too aggressive in assuming TSLA gets to the finish line first on unsupervised autonomy and that other competitors can’t match its ability to scale,” Black said.

Earlier this week, Black criticized Tesla management for continuing to “overpromise and underdeliver,” saying CEO Elon Musk needed to “shore up credibility” around the company’s autonomous driving ambitions.