No One Wants Tesla? Tesla Investor Ross Gerber Revealed The Big News

Introduction To Tesla

Tesla, founded in 2003 by engineers Martin Eberhard and Marc Tarpenning, has become one of the most influential companies in the automotive and energy sectors. Initially focused on electric vehicles (EVs), Tesla gained widespread attention with the launch of its first car, the Roadster, in 2008. The Roadster was the first highway-legal electric vehicle to use lithium-ion battery cells, marking a significant breakthrough in EV technology.

Under the leadership of Elon Musk, who joined the company shortly after its founding and became CEO in 2008, Tesla expanded its product lineup with the Model S, Model X, Model 3, and Model Y. These vehicles have set new standards for performance, safety, and range, with the Model 3 becoming one of the best-selling electric cars globally.

Tesla’s impact extends beyond automobiles. The company is heavily involved in energy storage and solar energy, offering products like the Powerwall, Powerpack, and Solar Roof. These innovations align with Tesla’s mission to accelerate the world’s transition to sustainable energy.

In addition to its product offerings, Tesla has also revolutionized manufacturing processes, with the introduction of the Gigafactory—large-scale production facilities designed to produce batteries and vehicles at unprecedented volumes.

Despite facing various challenges, including production delays and intense competition, Tesla has maintained its position as a leader in the EV market and continues to push the boundaries of technology and sustainability. As of 2024, Tesla remains a pivotal player in the global shift toward renewable energy and electrification.

Tesla Investor Ross Gerber Revealed The Big News

Ross Gerber, who has been a Tesla investor for a long time, has recently sold around $60 million worth of shares, citing worries that interest in Tesla’s cars and robots is decreasing. He described the current situation as a “quagmire,” with a saturated used car market filled with old Tesla’s.

Gerber voiced his concerns about Tesla’s leadership under Elon Musk, arguing that the company is more focused on ambitious robotics projects rather than prioritizing vehicle sales. He pointed out a noticeable drop in sales, which he believes is due to increasing competition and Musk’s divisive management approach.

Gerber, a vocal critic of Musk since the Tesla CEO’s acquisition of Twitter in 2022, revealed that he sold about $60 million worth of his Tesla shares. In a recent interview with Yahoo Finance, he mentioned that his investment fund still holds a $50 million stake in the company.

Gerber explained that he has gradually reduced his investment in Tesla because he no longer believes the company will meet its original goals, particularly in selling more cars. He dismissed the optimistic discussions about Tesla’s robotics and self-driving technology as distractions, emphasizing that the company’s immediate priority should be selling cars, not just this year, but in the coming years, as these advanced technologies are still far from being realized.

Other Tesla investors are becoming increasingly doubtful and impatient about the company’s direction. Tesla’s stock has dropped 13% this year, mainly due to falling sales, growing competition in China, and the ongoing legal controversies surrounding Elon Musk.

Read more: Elon Musk Unveils His Upcoming AI Supercomputer

Gerber criticized the situation, saying that despite Tesla having the best products in the industry, the CEO isn’t fully focused on the company or selling cars. He pointed out that sales have been declining, warning that those expecting a strong quarter are mistaken. According to him, Tesla’s current sales strategy relies heavily on offering discounts.

While analysts argue that Tesla is undervalued as an AI company, Gerber expressed doubt that artificial intelligence would rescue the business. He speculated that demand for Tesla’s humanoid robots would be low, especially given the uncertainty surrounding Musk following his chaotic transformation of Twitter into X.

Gerber suggested a simple test: ask your neighbors how many would buy a humanoid robot made by Elon Musk? and the answer would likely be none. OK. Nobody wants a robot from Elon Musk? Why? Who would trust it? He adding: “The last thing I need is a robot built by Elon Musk in my house.” He also wondered if Tesla had even considered how to market these robots effectively.