A prominent Tesla investor and long-time supporter has launched a sharp critique against CEO Elon Musk's ambitious claims regarding the company's self-driving technology. Ross Gerber, co-founder of Gerber Kawasaki Wealth & Investment Management, took to social media to accuse Musk of making unrealistic promises that fail to materialise.
Gerber's Scathing Critique on Social Media
In a detailed post on the platform X, formerly Twitter, Gerber expressed his frustration with what he termed Musk's "hallucinations" during investor conference calls. He specifically pointed to Tesla's missed target of launching a fleet of driverless Robotaxis by the end of 2025. Gerber, who has often been a vocal advocate for the electric vehicle giant, stated that the company's Full Self-Driving (FSD) system remains "problematic," offering only Level 2 autonomy where the driver must constantly supervise.
"The CEO makes claims (hallucinations) on conference calls that don't even come remotely true... FSD still nags me at level 2," Gerber wrote. He further dismantled key pillars of Tesla's future narrative, adding, "The robotaxis are still just Ubers. The robot is far from working. Car sales are falling." He capped his criticism by highlighting Tesla's sky-high valuation, with a price-to-earnings ratio near 300, calling it unsustainable and warning that "something has got to give."
Tesla's Autonomous Push Amidst Criticism
Despite the criticism from a key bull, Tesla continues its aggressive pursuit of autonomous technology. Elon Musk recently claimed he was driven around Austin in a Tesla Robotaxi prototype. Sightings of the company's Cybercab have been reported in California and Texas, with Musk promising a production scale-up within the year. The CEO has also commented on the challenges of scaling self-driving technology, identifying distribution as a major hurdle, even as he acknowledged advancements like Nvidia's new Alpamayo platform.
A Shift in Stance from a Former Bull
Gerber's recent comments mark a significant shift in his public stance. During an appearance on the Chasing Finance podcast, he clarified, "I'm not a fan of Elon. But I'm not going to deny the fact he builds great products." This growing criticism extends beyond technological promises. In November, Gerber blasted Tesla for allocating resources to promote Musk's controversial $1 trillion compensation package while the company faced challenges in selling its vehicles. This pay plan faced opposition from major investors, including Norway's sovereign wealth fund, due to concerns over share dilution and Musk's overwhelming influence.
However, Gerber did acknowledge Musk's unparalleled work ethic and his historic ability to build companies that attract a premium from investors. "He's built some big companies and he's succeeded," Gerber conceded, indicating a complex view of a leader whose promises he now openly questions. The critique underscores rising investor impatience with the gap between Tesla's futuristic ambitions and its present-day commercial and technological realities.
