Tesla Bull Gary Black Warns Investors About Confusing 'Great Company' With a Great Stock: ‘Valuation Matters’ Even With 45% EPS Growth
Tesla Bull Gary Black Warns Investors About Confusing 'Great Company' With a Great Stock: ‘Valuation Matters’ Even With 45% EPS Growth
Ananya GairolaWed, October 7, 2026 at 6:05 AM UTC
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On Tuesday, investor Gary Black said he remains bullish on Tesla Inc.’s (NASDAQ:TSLA) business prospects but believes the electric vehicle maker’s stock price warrants closer scrutiny.
Gary Black Warns Tesla Investors About Valuation
Black, managing partner at The Future Fund LLC, said that Tesla is a "great company" with a unique opportunity to reshape transportation.
However, he cautioned that enthusiasm for the business should not automatically translate into enthusiasm for its stock. "Loving a company doesn’t mean you should love the stock."
According to Black, Tesla is trading at roughly 234 times fiscal 2026 earnings, despite expectations for about 45% forward earnings-per-share growth.
That puts its price-to-earnings-to-growth, or PEG, ratio at about 5.2, which Black described as "rich by any standard."
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Tesla Bull Pushes Back on ‘Value Investor’ Label
A user responding to Black accused him of cherry-picking Tesla’s performance and suggested value investing had underperformed in recent years.
Black rejected the characterization, saying he is a "growth investor, not a value investor." He argued that valuation discipline is not exclusive to value-focused investors.
"Valuation discipline," Black said, means selling stocks when their market price exceeds their intrinsic value. "Applies to all investors – growth or value."
Tesla Q3 2026 Earnings Report Due Oct. 21
Tesla is set to report its full third-quarter 2026 financial results after the market closes on Oct. 21, 2026.
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The company reported 486,500 vehicle deliveries for the third quarter, topping the consensus estimate of 462,000 vehicles.
In the second quarter, Tesla posted $28.24 billion in revenue, exceeding the Street consensus estimate of $25.71 billion. However, adjusted earnings came in at 33 cents per share, below analysts’ expectations of 50 cents per share.
Price Action: Tesla shares closed Monday at $380.68, up 0.51%. The stock was down 16.01% over the past year and 13.10% year to date, while gaining 3.40% over the past month, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings: TSLA shows a weak medium- and long-term price trend, while its short-term trend remains positive. The stock ranks in the 53rd percentile for Quality.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Tesla Rival Lucid Cuts Production Output by 38%, Misses Delivery Estimates Despite High Fuel Costs Leading to EV Surge
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This article Tesla Bull Gary Black Warns Investors About Confusing 'Great Company' With a Great Stock: ‘Valuation Matters’ Even With 45% EPS Growth originally appeared on Benzinga.com
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