The Future Fund's Gary Black said Monday Tesla Inc (NASDAQ:TSLA) and Space Exploration Technologies Corp (NASDAQ:SPCX) investors were overlooking deteriorating earnings expectations and valuation metrics, while investor Ross Gerber said SpaceX could become a buying opportunity after its recent selloff.
Black Says Investors Ignore Valuation Math Black said the only investors surprised by the recent declines in Tesla and SpaceX shares are those who "don't do valuation math," adding that Tesla cannot trade at 180x to 210x forward earnings while forward earnings estimates and growth rates continue to move lower.
The comments came after investor Randy Kirk said in an interview with Larry Goldberg that investors were surprised by the recent declines in both company shares.
According to a chart shared by Black on X, analysts have cut Tesla's projected 2027 adjusted earnings per share by about 21% year-to-date and nearly 30% over the past 12 months, with the current consensus estimate standing at $2.37.
The only people shocked by $TSLA and $SPCX stock price action are TSLA investors who don’t do valuation math.
