The Future Fund LLC Managing Partner Gary Black expects Tesla’s shares to rebound after volatility from Elon Musk’s Twitter takeover and inflation, as shown in a segment of Yahoo Finance‘s Market Check on Tuesday.
In the segment, Black says that Tesla’s performance as a growth fund in 2020 and 2021 was impressive, despite the stock being down thus far on the year.
Black also cites Musk’s Twitter takeover as the main part of the reason Tesla’s stocks have been down over the year, saying that it has “proved to be a distraction.”
Elon Musk Sold $4.4 Billion Worth of Tesla Shares on Thursday, Shows Filing https://t.co/Srvrjj7V6X
— TeslaNorth.com (@RealTeslaNorth) April 29, 2022
Upon Musk finally taking over Twitter, Black notes that Tesla shares will begin to rebound again, just as federal inflation rate increases continue to slow to a halt.
Black said, “We see inflation easing throughout the year, you’re already seeing it come down. The fed will take a fifty-point increase in June, and again in July, and then we think it’s going to pause.” Black continued, “So that lets us be more confident that growth stocks will continue to rebound, as you saw last week.”
Black’s top two holdings with the Future Fund are Tesla and Alphabet, and he remains bullish despite the bear market — which has been negatively affected also by Tesla having to shut down its Gigafactory Shanghai for about 22 days.
Shares of Tesla are trading at $770.65 on Tuesday as of writing, up 1.45% for the day.
