Investment firm Gerber Kawasaki‘s co-founder, Ross Gerber, believes that Tesla Inc.‘s focus shifting away from EVs could be a strategic error for Elon Musk‘s EV giant.
A Strategic Error For Tesla
Gerber expressed his concerns in an interview, stating that his firm still holds over $80 million in Tesla stock for clients. He added that he personally still owns the stock, valuing Tesla’s core automotive and energy business at $150 per share. However, he noted that the rest of the stock price is based on hope for new products, such as Robotics and Full Self-Driving, which he believes are not yet a reality.
Gerber emphasized that Tesla earning profits from Robotics, like Cybercab, will take a long time. Instead, he suggested that Tesla should focus on its EV business, which is still “wildly profitable” and produces “the best cars in the world.” He warned that letting the EV business falter is a strategic error, and Tesla should focus on selling cars to repair the brand’s image as it transitions to the future.
Gerber Questions Musk’s Robot Army Comments
Gerber also questioned Musk’s comments about building an army of robots, stating that it is concerning to hear Musk say, “If I build a robot army, I must be in control of it.” This comment was made during an earnings call, where Musk expressed concerns about not having enough influence over Tesla ahead of a shareholder meeting.
Elon Musk Calls Proxy Advisors ‘Corporate Terrorists’
During the earnings call, Musk criticized proxy advisory firms for opposing his new CEO compensation package, calling them “corporate terrorists” that advise shareholders to vote on “random political lines.” Musk’s criticism was echoed by Tesla’s Board Chair, Robyn Denholm, who also criticized the firms’ “misguided” advice to shareholders.
Conclusion
In summary, Ross Gerber believes that Tesla’s focus on new products, such as Robotics and Full Self-Driving, is a strategic error and that the company should focus on its EV business. Gerber’s comments come as Musk faces criticism for his comments about building a robot army and his CEO compensation package. As the EV giant continues to evolve, it will be interesting to see how Musk responds to these criticisms and whether Tesla can maintain its position as a leader in the industry.
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