The Future Fund LLC Managing Director, Gary Black, warned investors on Friday that Tesla Inc.‘s TSLA Robotaxi app download surge shouldn’t be interpreted as a bullish signal.
Writing on X, Black noted Apple Inc. AAPL ranks apps based on download velocity, making one-time rushes incomparable to established applications.
Tesla’s Robotaxi app outpaced Uber Technologies Inc.‘s UBER 30-day downloads by 40%, according to ARK Invest data. The app also exceeded Alphabet Inc.‘s GOOGL GOOG Waymo lifetime downloads by six times.
Despite these metrics, Tesla stock has underperformed since the June 22 Austin launch, declining 4% while the Nasdaq gained 9%.
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Black emphasized that the Robotaxi service operates in only two markets, with safety monitors still present. “The Robotaxi experience isn’t much different than taking an Uber, and wait times are sure to be much longer,” he stated. The app launched on Thursday on iOS, requiring users to join a waitlist before accessing the service.
Elon Musk‘s xAI and X platform sued Apple and OpenAI in August, alleging antitrust violations and favoritism toward ChatGPT over xAI’s Grok app. Musk claimed Apple made it “impossible for any AI company besides OpenAI to reach #1 in the App Store,” threatening immediate legal action.
Despite Grok’s million reviews averaging 4.9 stars, Apple excluded it from the “Must Have” section while featuring ChatGPT.
U.S. Transportation Secretary Sean Duffy proposed easing autonomous vehicle regulations, revising Federal Motor Vehicle Safety Standards originally designed for human drivers. Tesla announced its Austin Robotaxi service now operates on highways with onboard safety operators moving from passenger to driver seats.
Tesla traded at $341.35, up 2.17%, in pre-market Friday. Black’s firm maintains no position in Tesla shares but wouldn’t short the stock.
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