Ross Gerber, a longtime Tesla Inc. (TSLA) advocate and CEO of Gerber Kawasaki Wealth, recently parted with $60 million worth of Tesla shares, citing waning confidence in the electric vehicle titan’s future.
Despite remaining a vocal critic of Elon Musk, Gerber’s fund still holds a $50 million stake in Tesla, reflecting his cautious optimism.
In an interview with Yahoo Finance, Gerber expressed doubts about Tesla’s ability to meet its ambitious sales goals, particularly in the face of growing competition and evolving market dynamics.
“Over time, I’ve just been sort of lowering my position, because I just don’t have the same confidence that they’re going to achieve the goals that were set out for Tesla several years ago and even recently, which is really to sell more cars,” Gerber stated.
The broader investor community seems to share his skepticism. Tesla’s stock has dipped over 15% this year, pressured by declining sales, stiff competition in China, and Musk’s ongoing legal challenges.
The used-car business market now flooded with older Tesla models, further complicates the company’s prospects, with Gerber himself struggling to sell his vehicle at a fair price.
Adding to his concerns, Gerber criticized Musk’s focus on AI and robotics, arguing that Tesla’s push into humanoid robots might not resonate with consumers.
“Nobody wants a robot from Elon Musk. Why? Who would trust it?” he remarked.
Gerber’s apprehensions are not new. Back in April, he predicted a challenging earnings season for Tesla, questioning the company’s growth strategy.
He attributed Tesla’s underwhelming first-quarter sales to Musk’s “toxic” leadership style, stating, “Basically, Tesla can’t sell its cars due to Elon’s behavior. Let’s stop blaming external factors.”
Despite these criticisms, not all analysts are bearish on Tesla’s future. Tasha Kenney of Ark Invest highlighted Tesla’s potential to lead the robotaxi market, outpacing competitors like Alphabet Inc.’s Waymo and Baidu Inc.
Kenney pointed to advancements in Tesla’s technology that could drive down costs and increase scalability.
Musk remains undeterred, with ambitious plans for Tesla’s humanoid robots, dubbed Optimus.
He envisions a future where humans could upload their memories to the cloud and download them into these robots, expanding the horizons of what Tesla’s technology could achieve.
As the dust settles, one thing is clear: Tesla’s journey is far from over, but its path forward is riddled with challenges and opportunities alike.
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