Gary Black says Tesla's Bitcoin is irrelevant to stock price
- Gary Black highlighted that Bitcoin holdings have a minimal effect on Tesla’s stock price, equating to only $0.33 per share.
- He advocated for Tesla to focus on expanding its electric vehicle production and energy business rather than cryptocurrency investments.
- The Future Fund LLC has reduced its Tesla stock position, highlighting an ongoing strategy to optimize investment in light of market dynamics.
In a recent statement, Gary Black, Managing Partner at Future Fund LLC, voiced his concerns regarding Tesla's investments in Bitcoin. He stated that the cryptocurrency holdings, which gained significant value reaching over $100,000, have minimal relevance to the stock price of Tesla Inc. Black pointed out that even if Bitcoin's price soared to $100,000, Tesla's holdings would equate to approximately $0.33 per share, raising questions about their impact on the company's core business. Black emphasized that Tesla should concentrate on its main operations, particularly in expanding its electric vehicle (EV) production, as well as investing in new plants and energy sectors. He suggested that shareholders are capable of purchasing Bitcoin independently, making Tesla’s capital allocation towards cryptocurrency unnecessary. His comments were made during the ongoing surge in Bitcoin prices, which have rekindled discussions about Tesla's investments in digital assets. The Future Fund LLC has adjusted its position in Tesla, reducing its stake to 4.31% from 12.2%, reflecting a strategic pivot amid changing market conditions. Black's investment strategy focuses on buying low and selling high, as he highlighted, suggesting a ongoing evaluation of Tesla's stock value in relation to the overall market dynamics. Despite his reservations regarding Bitcoin, Black maintains a bullish view on Tesla’s long-term performance in the EV market, where the company continues to dominate with a market capitalization exceeding $1 trillion. Tesla's stock performed positively on the day of Black's remarks, closing at $357.93, with a year-to-date increase of 44.08%. Analysts have varied opinions on Tesla's stock potential, with a consensus price target of $246.16 indicating a possible downturn from its current valuation. This scenario illustrates the complexity of market perceptions regarding Tesla's operations and its interrelationship with evolving digital currencies like Bitcoin.