Part 5/13:
Gary Black underscores that for Tesla to revisit all-time highs, earnings revisions need to turn positive. Historically, Tesla's stock tends to lead earnings adjustments, rising before profits do, often due to hype and speculation. The recent rally since mid-May reflects this phenomenon, driven by stabilized gross margins and promising product pipelines.
The introduction of the Cybertruck is a case in point. When Model Y launched in 2020, Tesla's stock surged sevenfold, a pattern Black believes could repeat. The Cybertruck’s distinctive design—large, as big as an F-150 yet often compared humorously to something from Mars—generates buzz that can translate into long-term demand and brand loyalty.