Investors Ross Gerber and Gary Black have expressed their disappointment and criticism towards Tesla’s recent launch of affordable Model Y and Model 3 trim levels. The two investors took to social media platform X to share their thoughts on the matter.
Ross Gerber: Elon Musk ‘Pilfered’ EV Credit
Gerber, co-founder of Gerber Kawasaki, stated that the new affordable models would “eat sales from higher priced models” and criticized Tesla CEO Elon Musk, saying that “the tax credit got pilfered” by Musk himself. He warned potential buyers that purchasing the cheaper models would result in financial losses, advising them to only lease new Teslas.
“Literally called it. $7500 less good only to eat sales from higher priced models. Why? Because the tax credit got pilfered by the ceo himself.”
“If you buy this car, cheap model Y/3, you will lose money. They will lower the price soon and you just paid $5 k too much. Only lease new teslas. Take this as a warning.”
Gary Black: Affordable Model Y Won’t Sell
Black, managing director of the Future Fund LLC, also expressed his criticism of the new affordable Tesla Model Y, citing the lack of features and poor value for the price. He listed several compromises made on the cheaper model, including lower battery range, less acceleration, and cheaper sound system.
“For $5,000 less, you get lower battery range, less acceleration, cloth seats, no exterior light bars, smaller wheels, no 2nd row touch screen, and cheaper sound system. And they covered up the glass sunroof! The sub-$40K price may get buyers into the stores, but I don’t see these selling.”
Both Gerber and Black have been vocal critics of Tesla in the past, with Gerber warning of a difficult Q4 for the company and Black stating that the affordable Model Y wouldn’t enhance the automaker’s brand appeal.
What’s Next for Tesla?
As the company navigates the evolving electric vehicle market, investors and critics alike will be watching closely to see how Tesla’s latest moves play out. With the affordable Model Y and Model 3 trim levels now available, it remains to be seen whether the company can maintain its market momentum and appeal to a wider range of customers.