Tesla’s Future Uncertain: Early Investor Voices Concerns Over Self-Driving, Robotaxis, and Musk’s Leadership
Staff Editor Early Tesla Investor Expresses Doubts About Company’s Future Despite Musk’s Return
Ross Gerber, a prominent early investor in Tesla, has voiced skepticism about the electric vehicle manufacturer’s potential for a comeback, even with CEO Elon Musk’s renewed focus on the company. Gerber, known for his long-standing support of Tesla, is now questioning the viability of its self-driving technology and proposed robotaxi business.
In a surprising move, Gerber revealed that he is using the recent uptick in Tesla’s stock price as an opportunity to reduce his holdings in the company. This decision comes amid growing concerns about Musk’s impact on the Tesla brand and the company’s ability to meet its ambitious product timelines.
Gerber pointed to survey data indicating a significant decline in Musk’s popularity among Americans, suggesting that the CEO’s involvement could potentially harm Tesla’s brand image. “Musk’s return might actually exacerbate the brand damage and negatively affect electric vehicle sales,” Gerber stated.
The investor also expressed doubts about Tesla’s much-anticipated robotaxi business. Citing the company’s history of missing product launch deadlines, including delays in the semi-truck and Roadster, Gerber questioned the feasibility of the robotaxi timeline and the effectiveness of Tesla’s self-driving software. He further cast doubt on the profitability of the robotaxi segment compared to Tesla’s core automotive business.
When asked about conditions that might renew his optimism in Tesla, Gerber suggested that a decrease in the company’s valuation would be necessary. He highlighted Tesla’s high price-to-earnings ratio and declining sales as areas of concern. Additionally, Gerber proposed that Musk step back to a Chairman role and appoint a new CEO to improve the brand’s reputation.
Gerber’s investment strategy has shifted in recent years, with his firm gradually reducing its Tesla holdings over the past two years. Recent filings indicate further reductions in Tesla stock, with updated figures expected to be released in mid-May.
As Tesla faces increasing competition in the electric vehicle market and scrutiny over its autonomous driving capabilities, Gerber’s comments reflect growing uncertainty among some long-term investors about the company’s future trajectory. The coming months will likely prove crucial for Tesla as it seeks to maintain its position as a leader in the evolving automotive industry.
