for a long time Tesla Inc. TSLA Investors and Gerber Kawasaki Wealth CEO Ross Gerber Tesla has sold about $60 million worth of Tesla shares. Gerber cited lack of interest in the company's cars and robots as the main reason for his decision.
What happened: Gerber, an outspoken critic Elon Muskdisclosed that his investment fund still holds a $50 million stake in the company. He expressed doubts about Tesla's ability to meet sales targets, dismissing optimistic claims about the company's robotics and self-driving technology. Gerber said this in an interview with Yahoo Finance on Friday.
“Over time, I've been reducing my position, because I'm no longer as confident that they're going to achieve the goals that were set for Tesla many years ago and more recently, which is to actually sell more cars,” Gerber said.
Other investors are also skeptical of Tesla, with the stock down more than 15% this year due to declining sales, growing competition in China and Musk's legal issues. Gerber said the used car market is flooded with old Tesla cars, making it difficult to sell your own vehicle at a reasonable price.
Gerber criticized Musk's focus on AI and robotics, suggesting that Tesla's humanoid robots would be in little demand. “Nobody wants a robot from Elon Musk. Why? Who would trust it?” he said.
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Why does it matter?Gerber's concerns about Tesla are not new. In April, Gerber predicted a challenging earnings report for Tesla, raising questions about the company's growth strategy. He suggested that Tesla's earnings report might not meet expectations, raising doubts about the company's ability to sell more cars with its current strategy.
In addition, Gerber has been critical of Musk's leadership, blaming Musk's “toxic” behavior for Tesla's poor first quarter sales. In April, Gerber said, “Basically Tesla can't sell its cars because of Elon's behavior. Let's stop blaming Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates.”
Despite these criticisms, some analysts believe Tesla has a strong future in the robotaxi market. On Tuesday, Ark Invest Analyst Tasha Kenny Highlights Tesla's ability to dominate the robotaxi market, even if competition can be avoided. Alphabet Inc.'S Waymo And Baidu Inc. Kenny said Tesla's technological advancements could significantly reduce costs and increase scalability.
In addition, Musk has ambitious plans for Tesla's humanoid robots. Musk envisions a future where humans can upload their memories to the cloud and download them to humanoid robots, another addition to the list of benefits he sees for the company's robots. OPTIMUS,
Price ActionTesla's stock closed 1.88% lower at $209.21 on Tuesday. The stock fell another 0.53% in after-hours trading. According to data from Benzinga Pro, Tesla's stock has fallen 15.78% so far this year.
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This story was created and edited using Benzinga Neuro Kaustubh Bagalkote
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