January 19, 2026
Finance

Gary Black Foresees Significant Autonomy Challenges for Auto Makers Outside Tesla's Sphere

Investor Warns of a 'BlackBerry Moment' for OEMs Lagging in Autonomous Vehicle Technology While Tesla Advances Subscription-Based FSD

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Summary

Gary Black, managing director of Future Fund LLC, highlighted the looming risks for automakers that fail to prioritize autonomous driving advancements, suggesting a disruptive shift akin to BlackBerry's market displacement. While acknowledging Tesla's leadership, Black expressed that a monopoly in autonomy is unlikely. The shift to a subscription model for Tesla's Full Self-Driving feature reflects strategic moves to increase adoption amid competitive pressures in the evolving autonomous vehicle landscape.

Key Points

Gary Black warns OEMs not advancing unsupervised autonomy risk a disruptive 'BlackBerry moment'.
Tesla's Full Self-Driving (FSD) technology sees roughly 15% adoption, possibly due to limited consumer awareness of benefits.
Tesla plans to offer FSD as a subscription service at $99 per month to foster wider adoption and meet milestone targets.
Elon Musk has not sold Tesla shares in three years and has invested nearly $1 billion in additional stock in 2025, signaling confidence in Tesla's direction.

Investor and managing director of Future Fund LLC, Gary Black, recently articulated his views on the competitive dynamics of autonomous vehicle technology within the automotive industry. His observations were shared on social media platform X, emphasizing the strategic implications for automakers that hesitate or fail to invest meaningfully in autonomous driving capabilities.

Central to Black's perspective is the identification of a forthcoming critical juncture for original equipment manufacturers (OEMs) who do not effectively solve the challenge of unsupervised autonomous driving. He characterizes this impending phase as a 'BlackBerry moment' — a reference to the significant market disruption faced by BlackBerry Ltd. when touchscreen smartphones with operating systems from Apple Inc. and Alphabet Inc. transformed the mobile device landscape.

In his commentary, Black addresses the debate surrounding Tesla Inc.'s progress in autonomous driving, acknowledging the company’s technical advances but clarifying that his focus is on competitive advantage rather than solely on product superiority. He notes that initial engagements with fellow social media users had drawn technical arguments emphasizing Tesla's potential to erect an "insurmountable moat" with its autonomous features.

Despite agreeing with the notion that an industry disruption akin to BlackBerry's decline is imminent for OEMs not equipped with robust unsupervised autonomy solutions, Black expresses skepticism toward Tesla becoming the definitive 'winner-take-all' entity in autonomous driving technology. His cautionary stance suggests a more competitive and fractured landscape where multiple players might contend for autonomy leadership.

Black raises questions about Tesla's Full Self-Driving (FSD) system adoption rate, which reportedly remains near 15%. He attributes this relatively modest uptake partly to a lack of customer awareness regarding the benefits and technological edge of FSD. This insight points to potential barriers beyond technological capability, such as marketing, consumer education, or perceived value propositions that influence subscription rates.

In a recent strategic initiative, Tesla announced it would transition its FSD feature to a subscription-based model, with a monthly fee set at $99. This change, effective following Valentine's Day of the current year, aims to broaden accessibility and increase the active user base. The subscription model aligns with milestones established in Elon Musk's ambitious compensation package, which ties significant personal gains to Tesla achieving 10 million active FSD subscriptions.

Elon Musk's commitment to Tesla remains strong, as evidenced by his personal investment actions. He disclosed not having sold Tesla shares for approximately three years and actively purchasing nearly $1 billion worth of additional stock throughout 2025. These moves underscore his confidence in Tesla's trajectory and autonomous driving developments.

Market data as noted by Benzinga Edge Rankings reflects a favorable momentum and sustained price trends for Tesla's shares in the medium and long term. On January 16, Tesla's stock (NASDAQ: TSLA) slightly decreased by 0.24% to close at $437.50, with minor additional declines observed during after-hours trading.

The implications of Black's analysis extend beyond Tesla, signaling urgent strategic considerations for other automakers. The potential emergence of a 'BlackBerry moment' implies a scenario where companies slow to embrace unsupervised autonomous technologies risk significant competitive disadvantage or obsolescence. OEMs are thus challenged to innovate and effectively communicate the value of autonomy to consumers as the industry evolves.

As the autonomous vehicle sector advances, with subscription models and adoption hurdles in focus, stakeholders must balance technology development with pricing strategies and consumer engagement. Tesla's moves reflect an effort to capitalize on its technological position while expanding market penetration through new pricing frameworks.

The competitive environment around autonomous vehicles clearly remains dynamic. Gary Black's commentary brings attention to the critical intersection of technological innovation, market positioning, and user adoption rates that will shape the automotive industry's future landscape.

Risks
  • OEMs lagging in autonomous driving technologies risk significant competitive disadvantage.
  • Tesla's FSD adoption rate remains relatively low, indicating potential challenges in convincing consumers of its value.
  • Transitioning FSD to a subscription model may face acceptance and scalability hurdles.
  • The race for unsupervised autonomy leadership is competitive, with no single guaranteed winner, adding uncertainty to market outcomes.
Disclosure
Education only / not financial advice
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