<div id="readability-page-1"><div><div><p><strong>Future Fund LLC</strong>'s managing director, <strong>Gary Black</strong>, says that <strong>Tesla Inc.</strong>'s (NASDAQ:TSLA) brand leverage is underdeveloped amid affordable Model Y speculation.</p><p><em>Check out the price of TSLA here.</em></p><h2>‘Huge Supporter Of Brand Leverage,' Says Gary Black</h2><p>Taking to the social media platform X on Monday, the investor said that the new product launch from Tesla would most likely be a trimmed-down version of the Model Y crossover SUV, adding that he had been calling for a more affordable Tesla vehicle since 2020.</p><p>&#34;I'm a huge supporter of brand leverage,&#34; Black said, adding that &#34; lower-priced flanker products&#34; broaden a premium brand's appeal, but added that &#34;there has to be a marketing benefit that allows TSLA to enter a new product category (e.g. hatchback) to drive incremental TAM beside price.&#34;</p><p>He also cited <strong>Apple Inc.</strong>'s (NASDAQ:AAPL) iPhone 16e as an example of affordable models driving a brand's appeal. &#34;IMO TSLA brand leverage is still way undeveloped,&#34; the investor said.</p><h2>Gary Black's Tesla Model Y Criticism, Tesla's Other Affordable Trims</h2><p>This isn't the first instance of the investor questioning Tesla's strategy with the affordable trim. Black had previously stated that a new, affordable Model Y trim level wouldn't offer the EV giant &#34;incremental volume&#34; and would cannibalize sales.</p><p>His concerns were also shared by <strong>Deepwater Asset Management</strong>'s investor <strong>Gene Munster</strong>, who said that despite Tesla seemingly taking a page out of Apple's book. &#34;If it really looks just like the Y, it will cannibalize the Y. I have to think more about that trade off,&#34; Munster had shared.</p><p>Tesla isn't a stranger to offering specced-down versions of its models, with the company previously offering a trimmed-down Cybertruck with lesser features for $69,990. However, Tesla discontinued the model just 5 months after its launch.</p><p>Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. 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>Tesla Showcases Optimus Bot At Disney’s ‘Tron: ARES’ Premiere As Jared Leto Tries To ‘Fight’ A Robot</li> </ul><p><em>Photo courtesy: Shutterstock</em></p></div></div></div>

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<p>Gary Black, managing director of Future Fund LLC, believes Tesla's brand leverage is underdeveloped, particularly regarding the anticipated affordable Model Y. He argues that while lower-priced models can enhance a premium brand's appeal, they must also provide marketing benefits to successfully enter new product categories. Black's concerns echo those of other investors, who worry that a new affordable Model Y could cannibalize existing sales. Tesla has previously offered lower-spec versions of its models but discontinued them shortly after launch.</p>

- Gary Black, managing director of Future Fund LLC, argues that Tesla's brand leverage is underdeveloped, particularly regarding the anticipated affordable Model Y.  
- He emphasizes the importance of marketing benefits for Tesla to successfully enter new product categories and cites Apple's iPhone 16e as a successful example of affordable models enhancing brand appeal.  
- Black's concerns about potential cannibalization of existing Model Y sales are echoed by other investors, highlighting the challenges Tesla faces in expanding its product lineup.

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Gary Black Thinks Tesla's Brand Leverage Is 'Undeveloped,' Says Cheaper Model Needs To Have Marketing Benefit