FridayOL

Ross Gerber, CEO of Gerber Kawasaki, isn't backing down from his criticism of Tesla (TSLA). Following the sale of a significant 10% stake in the electric vehicle giant during the first quarter, Gerber is intensifying his scrutiny of Tesla's Full Self-Driving (FSD) technology and casting doubt on the highly anticipated Robotaxi launch. His concerns, shared on X (formerly Twitter), stem from personal experiences with Tesla's FSD, highlighting issues like unpredictable lane changes and delayed reactions, particularly within the Cybertruck.

Gerber's recent post detailed specific instances where his Cybertruck's FSD system exhibited concerning behavior. He described erratic lane changes and frustratingly delayed turns, suggesting the technology is far from ready for widespread adoption, let alone the demanding requirements of a Robotaxi service. This isn't the first time Gerber has voiced skepticism about Tesla. He has consistently questioned Elon Musk’s ambitious timelines and the viability of FSD, arguing that the current iteration is overhyped and potentially dangerous.

The timing of Gerber’s latest commentary is notable. Tesla is gearing up for a highly publicized Robotaxi event scheduled for later this year. The company envisions a future where autonomous vehicles form the backbone of transportation networks, but Gerber’s concerns add fuel to the debate about whether Tesla can realistically achieve this goal. Many analysts are already questioning the feasibility of Tesla's Robotaxi plans, citing regulatory hurdles, technological challenges, and safety concerns.

Gerber’s decision to reduce his firm’s stake in Tesla further underscores his bearish outlook. While he acknowledges Tesla’s past successes and the innovative spirit of Elon Musk, he believes the current valuation is unsustainable, particularly given the challenges facing FSD and the increasing competition in the EV market. He points to rivals like Waymo and Cruise, which have demonstrated more reliable autonomous driving capabilities, albeit in limited geographic areas. The competition is heating up, and Gerber believes Tesla needs to address its FSD shortcomings to maintain its competitive edge.

The sale of 10% of Gerber Kawasaki’s Tesla holdings is a significant move, signalling a lack of confidence in the company's near-term prospects. While Tesla enthusiasts remain steadfast in their belief in Musk’s vision, Gerber’s critique serves as a reminder of the significant obstacles that lie ahead for the company’s autonomous driving ambitions. The Robotaxi launch will be a crucial test for Tesla, and Gerber’s comments suggest the company faces an uphill battle to prove its technology is safe, reliable, and ready for prime time. Investors will be closely watching Tesla’s progress and assessing whether the company can overcome the challenges highlighted by critics like Ross Gerber.

Key Takeaways:

• Gerber Kawasaki CEO Ross Gerber sold 10% of his Tesla stake in Q1.
• He criticizes Tesla's FSD technology due to erratic behavior observed in his Cybertruck.
• Gerber expresses doubts about the success of Tesla’s upcoming Robotaxi launch.
• He believes Tesla’s valuation is unsustainable given the FSD challenges and competition.