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Investment firm Gerber Kawasaki's co-founder Ross Gerber thinks Tesla Inc.'s (NASDAQ:TSLA) focus shifting away from EVs could be a strategic error for Elon Musk's EV giant.
Check out the current price of TSLA stock here.
Speaking to Bloomberg during an interview on Wednesday, the investor outlined that his firm still held over "$80 million" in Tesla stock for clients. "I personally still own the stock," Gerber said, adding that Tesla's core automotive and energy business would still be worth $150 per share.
"But then when you look at the rest of the stock price, it's a 100% based off Elon or hope on the new products, which is Robotics and Full Self-Driving," Gerber said, highlighting that those add up to $300 per share and is built on "what the potential is in the future vs what's the reality."
Gerber also said that Tesla earning profits from Robotics, like Cybercab, is going to take a long time. He added that Tesla should instead focus on its EV business, which, according to the investor, is still "wildly profitable" and Tesla still makes "the best cars in the world," according to Gerber.
"Letting the EV business falter is a strategic error," Gerber said, adding that Tesla should focus on selling cars to repair the brand's image as the EV giant transitions to the future that “Elon sees."
Taking to the social media platform X on Wednesday, Gerber questioned Musk's comments during the earnings call about building an army of Robots. "He just said it. “If I build a robot army. I must be in control of it.” This is a bit concerning…" Gerber said in the post.
During the earnings call, Musk expressed concerns over not having enough influence over Tesla ahead of November's shareholder meeting, where investors would vote on approving Musk's new CEO compensation award worth $1 trillion, provided Tesla accomplishes all the milestones laid out by the Board.
"I don't feel comfortable wielding that robot army if I don't have at least a strong influence," the billionaire said. Musk had earlier said that the $1 trillion pay package offered by the Tesla Board wasn't about money but about retaining control over the EV giant.
During the earnings call, Musk criticized proxy advisory firms for opposing the new CEO compensation packet, calling them "corporate terrorists" advising shareholders to vote on "random political lines."
Musk's criticism follows Tesla's Board Chair, Robyn Denholm, also criticizing the firms' "misguided" advice to shareholders on voting against the compensation award.
Tesla scores well on Momentum, Quality and Growth metrics, but offers poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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