Investor Ross Gerber, co-founder of Gerber Kawasaki, has expressed his disappointment over the potential launch of a cheaper Tesla Model Y trim level. Gerber took to social media platform X to share his thoughts, stating “Please not another model Y thats less good for less money. It’s really sad.” This statement comes ahead of the October 7 event, where Tesla is expected to make an announcement.
Background
Gerber’s comments follow similar criticism from other investors, including Future Fund LLC’s managing director, Gary Black. Black has stated that a new affordable Model Y does not offer Tesla a chance to increase its brand leverage or expand its Total Addressable Market (TAM) via a new form factor.
Potential Impact on Tesla’s Q4
Despite Tesla’s third-quarter deliveries exceeding Wall Street and analyst estimates, Gerber has warned that the company could face a difficult Q4. This warning comes as the $7,500 federal EV credit ends, which could impact Tesla’s sales. Tesla delivered over 497,000 units during Q3, exceeding expectations.
Tesla’s Stock Performance
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. The company also offers a favorable price trend in the Short, Medium, and Long term.
Conclusion
As speculation surrounding the upcoming Tesla event continues to grow, investors like Ross Gerber are expressing their concerns over the potential launch of a cheaper Model Y trim level. With Tesla’s Q4 performance hanging in the balance, the company’s upcoming announcement is highly anticipated.
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