Ross Gerber, a longtime Tesla investor and CEO of Gerber Kawasaki Wealth, has sold approximately $60 million worth of Tesla shares, citing a lack of confidence in the company’s future. Gerber, a vocal critic of Elon Musk, expressed concerns about Tesla’s ability to meet its sales goals, particularly in the face of growing competition and a saturated used-car market. He also dismissed the potential for Tesla’s robotics and self-driving technology to generate significant revenue.
Gerber’s concerns stem from his belief that Tesla’s current strategy is flawed and that the company’s growth trajectory is unsustainable. He specifically criticized Musk’s focus on AI and robotics, suggesting that there is limited demand for Tesla’s humanoid robots.
“Nobody wants a robot from Elon Musk. Why? Who would trust it?” Gerber said during an interview with Yahoo Finance. Despite his skepticism, Gerber still holds a $50 million stake in Tesla.
Gerber’s decision to reduce his holdings reflects a growing trend of skepticism among investors regarding Tesla’s future. The stock has dropped over 15% this year, driven by declining sales, increased competition in the Chinese market, and Musk’s legal issues.
While Gerber remains cautious, some analysts believe Tesla has a strong future in the robotaxi market. Ark Invest analyst Tasha Kenney highlighted Tesla’s potential to dominate this market, citing advancements in its technology that could significantly reduce costs and enhance scalability.
Musk has also expressed ambitious plans for Tesla’s humanoid robots, envisioning a future where humans could upload their memories to the cloud and download them into robots. These plans, while ambitious, remain largely speculative and have yet to be realized.
Tesla’s stock closed at $209.21 on Tuesday, down 1.88% for the day. The stock has declined by 15.78% year to date, according to data from Benzinga Pro. Gerber’s decision to sell a significant portion of his Tesla shares highlights the growing uncertainties surrounding the company’s future, despite its continued focus on innovation and technological advancements.
