Gary Black's Tesla Prediction Holds Up: Stock Recovers As Musk-Trump Feud Fades, Robotaxi Launch Looms

Shares of Tesla Inc. TSLA recovered on Monday following a roller-coaster week involving feuds between President Donald Trump and the company’s CEO, Elon Musk, and this one prominent investor saw it all coming.

What Happened: On Monday, Gary Black, the managing partner at Future Fund LLC, highlighted his predictions on Tesla, Musk and Trump a week ago, which have since been realized.

“As predicted,” the renowned Tesla bull said, while quoting his posts from the prior week, where he had claimed that the company’s shares were now “oversold” following a 13.8% decline during the week, a result of Trump and Musk’s dramatic public feud.

Black had predicted that this feud would eventually die down, as it has this week, while adding that Musk would de-escalate the rhetoric leading up to the launch of Tesla’s much-awaited Robotaxis in Austin on June 12.

While he acknowledges that he’s unsure of the “lasting impact to $TSLA from the extraordinary events of the past 24 hours,” he remains certain that the stock is now in “oversold territory.”

“Both Musk and Trump have other priorities far more important than each other,” Black says, with Trump having to get his “Big, Beautiful Bill” through the Senate by the 4th of July, and Musk occupied with the Robotaxi, which is crucial for the company’s goal of getting “unsupervised autonomy approved everywhere.”

Tesla shares have since responded in kind, with a 4.55% rally on Monday, trading at $308.58 per share, and up 8.38% from its low point last week.

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Why It Matters: A long-time Tesla bull, Black sold the entirety of his fund’s stake in the company two weeks ago, citing its high valuation that he deems as being “disconnected from reality.”

Black highlighted Tesla’s staggering 180x earnings as unsustainable, saying that “The long-term growth rate needed to justify a 180x P/E would cause TSLA market cap to be bigger than $AAPL and $MSFT, which seems insane since both have huge TAMs, unassailable brands, and highly predictable future cash flow streams.”

Other leading analysts have since echoed this take, with Bill Selesky of Argus Research downgrading the stock from a “Buy” to a “Hold,” with a price target of $295.14.

However, Dan Ives, a senior analyst at Wedbush Securities, has a contrarian take on the stock, seeing a potential $2 trillion market cap by the end of 2026, while calling it “the most undervalued AI play in the market today.”

The stock scores remarkably well across Momentum, Growth and Quality according to Benzinga’s Edge Stock Rankings, with a favorable price trend in the short and long terms. Click here for deeper insights into the stock.

Photo Courtesy: Tada Images On Shutterstock.com

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