By Ben Emos and Tony Bruce | Thursday, October 02, 2024 | 3 min read
Tesla stock is in a challenging position, according to longtime investor Ross Gerber, who recently voiced concerns about the car maker’s future. Gerber, once a strong supporter of Tesla, has sold approximately $60 million worth of shares amid growing doubts about the company’s ability to meet its goals.
In an interview with Yahoo Finance, Gerber expressed skepticism about the demand for Tesla’s products, stating, “No one seems interested in buying Tesla’s cars or robots anymore.” He said his investment fund still holds around $50 million in Tesla stock, but his confidence has waned. “I’ve been gradually reducing my position because I don’t have the same belief that Tesla will achieve the targets they set out, especially when it comes to selling more cars.”
Gerber criticized Tesla’s focus on robotics and full self-driving technology, calling them distractions from the company’s core mission of selling vehicles. He emphasized that Tesla needs to sell cars now and in the coming years, rather than banking on future tech that may not materialize soon.
Other investors have echoed Gerber’s frustrations. Tesla’s stock is down 13% this year due to slowing sales, increased competition in China, and the ongoing legal drama surrounding CEO Elon Musk. Gerber pointed out that the used-car market is flooded with old Teslas, making it hard for him to sell his own vehicle at what he considered a reasonable price. “It’s a real quagmire,” he said, criticizing Musk for not focusing enough on selling cars.
Gerber added that Tesla’s frequent discounts on vehicles are evidence of falling demand. “If you’re expecting a great quarter, you’re wrong. They’re not selling Teslas here, except at deep discounts.”
While some analysts argue that Tesla is undervalued as an AI company, Gerber is not convinced that artificial intelligence will save the automaker. He doubts there will be significant demand for Tesla’s humanoid robots, especially given public skepticism surrounding Musk, exacerbated by his chaotic rebranding of Twitter as X.
“Just ask your neighbors—how many of them would buy a humanoid robot made by Elon Musk? The answer is zero,” Gerber quipped. “Nobody trusts Musk enough to bring one of his robots into their homes. I’m not sure they’ve thought about the marketing angle at all.”
Musk’s leadership at Tesla has come under increasing scrutiny from investors and lawmakers alike. Recently, Sen. Elizabeth Warren urged Tesla’s board to ensure Musk is fulfilling his financial responsibilities to shareholders. Meanwhile, Musk faces a growing challenge within his own base, many of whom are skeptical of EVs and may even entertain conspiracy theories about Tesla’s robots being potential spying devices. This tension between Musk’s political leanings and the company’s advanced technology complicates his appeal to a customer base that may not fully trust his innovations.
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