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Investor Slams Tesla's 'Inflated' FSD Subscription Numbers
24 Oct
Summary
- Investor Gary Black criticizes Tesla's communication as a major weakness.
- Black questions the inflated rate of Tesla's FSD subscriptions.
- Tesla seeks EU and China approval for its Full Self-Driving technology.
Investor Gary Black has identified a significant "communications problem" at Tesla, asserting that the EV giant's approach undermines its credibility despite possessing strong products. Black highlighted that Tesla's stock has lagged behind Apple's significantly over the past five years, attributing this to a lack of credibility stemming from "overpromise and hyped-up expectations."
Black specifically called for Tesla to release more data regarding the retention rates of its Full Self-Driving (FSD) subscriptions, questioning the "inflated" 75% figure reported for new North American deliveries. He argues that such transparency, particularly concerning how many customers maintain subscriptions three to six months post-trial, is crucial for rebuilding trust.
This critique continues Black's consistent calls for improved public relations and communications from Tesla. He believes the company should be more proactive in educating consumers about EV benefits rather than relying solely on price cuts. Meanwhile, Tesla is actively pursuing approval for its FSD technology in the European Union and China, with CEO Elon Musk expressing optimism for progress within months.
