Gary Black Says Tesla Bulls Are Ignoring Valuation: ‘Loving the Product Doesn’t Mean You Should Love the Stock’
Tesla investor Gary Black warns that bulls are ignoring valuation risks, stating 'Loving the product doesn’t mean you should love the stock.' He highlights a projected 200x P/E ratio for 2026 and a PEG ratio of 5.7x, significantly above the Magnificent 8 average. Black urges investors to focus on reasonable pricing rather than emotional attachment to Tesla's leadership or products.
Tesla Inc. (NASDAQ:TSLA) investor Gary Black has once again raised a red flag regarding the valuation of the Elon Musk-led EV giant, urging investors to pay attention to stock valuation metrics.
Black Warns Of Overlooking Valuation Risks
In a post on social media platform X, Black cautioned Tesla enthusiasts about the risks of overlooking whether the stock is reasonably priced.
He pointed out that despite admiration for Tesla’s products and leadership, the company’s current valuation could pose challenges for investors.
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Black noted that Tesla’s price-to-earnings (PE) ratio is projected to be 200x for 2026, with an expected long-term growth rate of 35%. This results in a price/earnings-to-growth (PEG) ratio of 5.7x, significantly higher than the average of 2.4x for Magnificent 8 stocks.
Emphasizing the importance of valuation in investment decisions, Black stated, "Loving the product doesn’t mean you should love the stock."
I rarely see $TSLA bulls on X posting on whether TSLA is cheap or expensive. It seems that since they love the products and leadership team they don’t care about the valuation. But at a 2026 P/E of 200x and long-term expected growth of +35%, it will be hard for an investor… pic.twitter.com/WCui1cViey
— Gary Black (@garyblack00) August 16, 2026
Black’s Cautionary Note About Tesla’s Marketing Strategy
Black’s concerns are not new. In a previous warning, he highlighted that Tesla cannot match Apple Inc.’s (NASDAQ:AAPL) marketing prowess by relying solely on word-of-mouth and Musk’s posts on X. He argued that Tesla needs to invest in professional marketing to expand beyond electric vehicles into autonomous driving and robotics.
Furthermore, Black has expressed concerns about Tesla’s self-driving ambitions. In a series of posts, he noted that investors are losing faith in Tesla’s ability to scale autonomy, blaming Musk’s vision-only approach.
Black has also criticized the "cult" mentality among some Tesla investors, urging them not to fall in love with the stock. He has previously stated that those who bought Tesla over the past five years underperformed compared to a basket of Nasdaq-100 names. He valued Tesla at $312 and warned investors not to become too attached to the stock.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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