Gary Black Says Tesla’s Q2 Deliveries Could Be A ‘Buy The News’ Event: ‘I Believe TSLA Will Miss’

Key Takeaways:

• Gary Black predicts Tesla will miss Q2 delivery estimates.
• Tesla’s expected deliveries are 370,000 units, a 17% year-over-year decline.
• Wall Street estimates 385,000 deliveries, a 13% decline.
• The delivery report could become a ‘buy the news’ event due to low expectations.
• Investor focus is shifting toward Tesla’s Robotaxi scalability in Austin.

Tesla’s Anticipated Q2 Delivery Miss

Investor Gary Black, managing director of Future Fund LLC, forecasts that Tesla Inc.’s second-quarter deliveries will fall short of Wall Street expectations. According to Black, the electric vehicle giant is expected to report 370,000 deliveries, marking a 17% year-over-year decline.

A Comparison of Estimates

Wall Street analysts predict Tesla will deliver approximately 385,000 vehicles for the quarter, representing a 13% decline from the previous year. Black’s estimate suggests a steeper drop, indicating potential challenges for the company.

A ‘Buy the News’ Opportunity?

Despite the anticipated shortfall, Black believes the market reaction might be favorable due to already low expectations. “Tomorrow’s $TSLA 2Q deliveries could be a ‘buy the news’ event, given low expectations going into the release,” he stated on social media platform X.

Shifting Focus to Robotaxi Scalability

Black questions whether the delivery miss will significantly impact investor sentiment. “I’m not sure it matters as everyone is focused on if and when TSLA robotaxi can scale,” he remarked. This suggests that market participants may be prioritizing Tesla’s long-term projects over immediate performance metrics.

Tesla’s Robotaxi Ambitions in Austin

Central to this shift in focus are Tesla’s ambitious Robotaxi plans in Austin. The company’s efforts to scale autonomous vehicle technology could redefine transportation and represent a significant revenue stream in the future. As such, investors are keenly watching developments in this area.

Conclusion

While the anticipated miss in Tesla’s Q2 deliveries might raise concerns, the potential for a ‘buy the news’ scenario reflects the complex dynamics of investor sentiment. With eyes turning toward the scalability of Tesla’s Robotaxi project, the company’s future prospects may outweigh short-term delivery figures.