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Black said Tesla must divulge data on how many customers keep their full self-driving (FSD) subscriptions 3-6 months after the free trial of the technology ends.
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The comment comes on the heels of Tesla confirming earlier this week that over 75% of deliveries in North America in the third quarter included a sign-up for a paid FSD subscription at the time of delivery.
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According to Black, the 75% is “clearly inflated.”
EV giant Tesla Inc (TSLA) has a “communications problem,” according to investor Gary Black, managing partner of The Future Fund LLC, who argued on Friday that the company’s approach undermines credibility despite technically strong products.
“I’ve said for years that TSLA’s Achilles’ heel is poor communications. $AAPL does not have a credibility problem,” Black said in a post on X, highlighting that over the past year Apple gained 33%, while Tesla fell 17%. Over five years, Apple advanced 133% while Tesla was up only 9%, he added.
Black further linked the alleged communications issue to longer-term effects, stating that Tesla stock has not moved in five years because of a lack of credibility stemming from “overpromise and hyped-up expectations.”
Black Calls TSLA’s FSD Data ‘Inflated’
Black said Tesla must divulge data on how many customers keep their full self-driving (FSD) subscriptions 3-6 months after the free trial of the technology ends, instead of immediately after the free trial period.
The comment comes on the heels of Tesla confirming earlier this week that over 75% of deliveries in North America in the third quarter included a sign-up for a paid FSD subscription at the time of delivery. According to Black, the 75% is “clearly inflated.” RBC Capital analyst Tom Narayan previously pegged FSD attach rate at 30-40% on a paid basis.
Black’s Consistent Critique Of TSLA Communications
Black’s Friday comments continue a consistent critique. He has previously argued that Tesla has not acted like a market leader by educating non-EV owners on benefits such as convenience, lower costs, performance, and technology, and has instead leaned on discounts or price cuts.
He has also called for a more proactive public relations strategy, noting that journalists often cite Tesla’s lack of engagement and that the media will run one-sided stories without company-provided context. Ahead of past earnings periods, Black has urged Tesla leadership to improve credibility by avoiding outlandish promises and bringing in experienced communications support. In other posts, he has warned that allowing products to speak for themselves risks wasting advantages in the vehicle autonomy race.
