<div id="readability-page-1"><div><div><p><strong>Future Fund LLC</strong>'s managing director, <strong>Gary Black</strong>, thinks <strong>Tesla Inc.</strong> <span>TSLA</span> should use its excess cash to buy back the EV giant's shares from shareholders.</p><h2>Buy Back More Stocks Rather Than Build Excess Cash</h2><p>Taking to the social media platform X on Friday, the investor said that Tesla needed to use the &#34;$37 billion in excess cash&#34; to purchase stock back, “rather than let it build up as more excess cash.&#34; He added that institutions would prefer Tesla to do the latter.</p><p>Black also said that institutional investors underown Tesla because the stock looks more expensive when compared to their estimates of its value. &#34;Valuation is why TSLA remains under owned – not because of its high volatility,&#34; he said.</p><p>He also drew a comparison of Tesla's stock with that of <strong>Nvidia </strong><span><strong>Corp</strong></span> <span>NVDA</span>, reiterating that the company's valuation relative to its share price remains the reason why institutions shy away from the stock.</p><h2>Gary Black Says TSLA Will Decline In Q4</h2><p>The comments come as the investor had earlier said that Tesla's stock would surge over strong Q3 deliveries, which would beat analyst estimates. However, he reiterated its price would then decline in the fourth quarter as &#34;the new more affordable model falls short of expectations,&#34; he said.</p><h2>Ross Gerber Says Tesla Surge Temporary Amid Elon Musk's $1 Billion Purchase</h2><p>Elsewhere, <strong>Gerber Kawasaki</strong>‘s co-founder, Ross Gerber, also predicted the decline of Tesla's stock, saying that the &#34;good news&#34; might not last as long and could end in two weeks, followed by a &#34;long winter,&#34; possibly hinting at uncertainty over Q4 deliveries due to a lack of incentives on EVs that would cause a price surge.</p><p>However, Tesla's stock rallied in the first place after an SEC filing showcased CEO <strong>Elon Musk</strong> buying over $1 billion in Tesla's shares, which led to the stock smashing the $420 mark.</p><p>Musk has also more or less recovered all of his lost wealth since he extended support to President <strong>Donald Trump</strong> last year, which led to widespread criticism and a severe decline in Tesla's sales.</p><p>Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!</p><p><em>Check out more of Benzinga's Future Of Mobility coverage by</em><em> following this link.</em></p><ul> <li>Elon Musk Thinks xAI Can Achieve AGI With Grok 5 Amid Renewed Focus On Tesla, AI: ‘Never Thought That Before’</li> </ul><p><em>Image Via Imagn</em></p></div></div></div>

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<p>Gary Black, managing director of Future Fund LLC, suggests Tesla should utilize its $37 billion in excess cash for stock buybacks instead of accumulating cash. He believes institutional investors underown Tesla due to its perceived high valuation compared to their estimates. Black predicts a decline in Tesla's stock in Q4, despite a surge from strong Q3 deliveries, as new models may not meet expectations. Ross Gerber also anticipates a temporary surge followed by a downturn due to potential delivery uncertainties and lack of EV incentives.</p>

- Gary Black, managing director of Future Fund LLC, suggests Tesla should utilize its $37 billion in excess cash for stock buybacks instead of accumulating more cash.  
- He argues that institutional investors underown Tesla due to its perceived high valuation compared to their estimates, not its volatility.  
- Black anticipates a decline in Tesla's stock price in Q4, following a surge from strong Q3 deliveries, while Ross Gerber predicts a temporary rise due to Elon Musk's recent stock purchase.

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Tesla Should Boost Buybacks With Excess Cash, Says Gary Black: 'Valuation Is Why Tesla Remains Under Owned'