Ross Gerber, co-founder of Gerber Kawasaki, has expressed concerns that Tesla Inc.’s recent surge in value may be short-lived. Despite the company’s sales figures surpassing analyst estimates, Gerber believes that this trend will not continue.
A Temporary Surge
Gerber took to social media to share his thoughts on Tesla’s stock surge, stating that the demand pull forward may seem positive at first, but it is actually a sign of a larger issue. He warned that the good sales news will end in two weeks, followed by a long period of uncertainty.
Lease, Don’t Buy
Gerber also reminded customers that the $7,500 IRA credit for EVs will expire soon, advising them to consider leasing a new Tesla vehicle instead of buying one. “Do not buy this car. Lease it,” he said.
Autonomous Technology Doubts
Gerber has previously questioned Tesla’s autonomous technology, criticizing Elon Musk for not addressing the hardware issues plaguing the company’s camera-only approach to autonomous driving. This could make it difficult for Tesla to achieve Level 4 or Level 5 Autonomy.
Contrasting Views
In contrast, Wedbush Securities investor Dan Ives has reiterated his bullish stance on Tesla, citing the company’s autonomous driving and AI push. He estimates that the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla.
Lackluster Sales Figures
Despite the recent surge, Tesla has been recording lackluster sales figures across multiple markets. The company’s market share in the US has fallen below 40% for the first time since 2017, and sales have declined by 40.2% in Europe.
Global EV Market Surge
However, the global EV market has seen a 15% surge in sales, with over 1.7 million electrified vehicles sold worldwide in August. This trend is expected to continue, with many investors and analysts predicting a bright future for the EV industry.
Stock Performance
Tesla scores well on Momentum and Growth metrics, but offers poor Value. For more insights and stock rankings, consider signing up for a premium service.
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