Ross Gerber, a long-time investor in Tesla, recently sold about $60 million worth of the company's stock. He made this decision due to concerns that demand for Tesla’s cars and robots is decreasing.
Gerber described the current market situation as a "quagmire," pointing out that many Teslas are used, which is saturating the market.
Gerber was critical of Tesla's leadership under CEO Elon Musk. He believes the company has lost its focus on selling cars, and instead is spending too much time on ambitious robotics projects.
According to Gerber, this shift in priorities is hurting the company’s car sales. He also mentioned a notable drop in sales, which he thinks is due to the increasing competition from other carmakers and Musk’s controversial style of managing the company.
The investor expressed disappointment that Tesla is not concentrating more on its core business of selling electric vehicles.
Tesla should be focusing its energy right now, especially when there is so much competition in the electric vehicle market. Gerber feels Tesla's move into robotics is a distraction that could hurt the company’s main source of revenue—car sales.
He also pointed out that many consumers are now turning to other brands for electric vehicles, as Tesla’s prices remain relatively high compared to new competitors entering the market.
This increased competition, along with Musk’s unpredictable management decisions, is creating challenges for Tesla in maintaining its market position.
Gerber’s decision to sell his shares reflects his concerns about Tesla’s direction and its ability to maintain strong demand for its cars in a market filled with old Teslas and new competitors.
He believes the company needs to refocus on selling cars instead of chasing big, futuristic projects that may not pay off in the near term.
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