Gary Black and business partner David Kalis established the technology-oriented Future Fund Active ETF FFND, -2.85% in August, and made Tesla its top holding, representing more than 10% of the portfolio’s assets.
Amazon.com Inc. AMZN, -1.81% provides an instructive example of a stock that many investors had steered clear of for decades because of its high P/E valuation. Here’s a chart showing the internet retailer’s forward P/E ratio over the past 20 years: All the numbers that follow are for battery electric cars, or BEVs. That means plug-in hybrids are excluded.
Black’s estimate for Tesla’s market share is higher than EV-Volumes’ numbers for the first half of 2021 indicate because of supply constraints. While the competition is catching up on battery range, he said that for performance and technology, Tesla is still ahead of the competition. He added that Tesla has, by far, the highest number of fast-charging stations available, and that drivers of competing EVs can buy low-cost adapters to use Tesla’s stations and possibly feel envious of Tesla owners while waiting.