Gary Black Says Tesla’s Bitcoin Holdings Aren’t ‘Relevant’ to TSLA Stock Price, Urges Focus on EV Expansion and Stock Buybacks – The Future Fund Active ETF (ARCA:FFND)

Management of Future Fund LLC partner Gary Black criticized Tesla Inc.‘S TSLA Bitcoin BTC/USD holdings on Wednesday, saying they would have minimal impact on the electric vehicle maker’s stock value as the cryptocurrency hit record highs.

What happened: “The price of Bitcoin is not relevant to Tesla’s share price,” Black wrote on “My problem has always been capital allocation – shareholders can buy Bitcoin themselves.”

Black emphasized that Tesla should prioritize its core business investments. “I want Tesla to build new factories, introduce new EV models, expand its energy business and invest in robotaxi,” he explained. “If there is still cash left, management can buy back Tesla shares.”

The comments came as Bitcoin surpassed $100,000 for the first time, reigniting debate over Tesla’s cryptocurrency investments. Black has consistently spoken out against Tesla’s Bitcoin holdings, arguing in June 2021 that they distract from the company’s EV mission and raise questions about earnings quality.

See also: Dogecoin follows Bitcoin’s $100,000 rally with a 9% rise as bullish predictions rise, but here’s what you should know

Why it matters: Blacks The Future Fund Active ETF FFND reduced its Tesla stake from 12.2% to 4.31%, making it its fifth-largest holding.

The average purchase price for Tesla shares by the Future Fund has been $162 since the beginning of 2023, and sales averaged $252. Despite recent criticism from Tesla bulls, Black defended his investment strategy, saying, “That’s what professional investors do – buy low, sell high.”

Tesla maintains its position as the electric vehicle leader with a market capitalization of over $1 trillion.

Price action: Tesla shares closed at $357.93 on Wednesday, up 1.85% on the day. The stock fell 0.34% in after-hours trading. Tesla shares have risen 44.08% since the beginning of the year.

Data from Benzinga Pro shows that Tesla has a consensus price target of $246.16 from 34 analysts, with estimates ranging from a high of $411 to a low of $24.86. Recent reviews of Roth MKM, StifelAnd UBS The average price is $339, a 4.96% decrease from the current Tesla price.

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Disclaimer: This content was created in part using AI tools, and was reviewed and published by Benzinga editors.