Ross Gerber, prominent investor and co-founder of Gerber Kawasaki, has publicly challenged Tesla Inc.'s bold claims about its autonomous vehicle technology. Speaking out on the social media platform X, Gerber directly criticized Tesla CEO Elon Musk for making optimistic statements during conference calls that he believes do not reflect reality.
Gerber described Musk's remarks as "hallucinations," asserting they "dont even come remotely true." He pointed to the struggles Tesla faces in realizing its vision for fully driverless Robotaxis, noting that the company has failed to meet its goal for achieving this feat by the end of the current year.
Despite notable improvements in Tesla's Full Self-Driving (FSD) software, which currently offers Level 2 autonomy, Gerber emphasizes that significant challenges remain. He underscored ongoing problems with the FSD system, implying it still falls short of delivering the promised autonomous experience.
In his critique, Gerber referred to Tesla's driverless taxi concept as little more than traditional ride-hailing services like Uber, stating, "The robotaxis are still just Ubers. The robot is far from working." He also raised concerns about Tesla's declining vehicle sales and questioned the sustainability of the company's stock valuation, highlighting a price-to-earnings ratio lingering around 300. Gerber concluded that "something has got to give," signaling skepticism over the company's current trajectory.
On the other side, Tesla's CEO Elon Musk recently shared updates on the firm's autonomous efforts. Musk recounted being driven autonomously by a Tesla Robotaxi in Austin, expressing optimism about the technology. He also revealed that the Cybercab, Tesla's upcoming autonomous vehicle, has been spotted undergoing test runs in Austin and California. Musk anticipates a production scale-up for this vehicle within the year.
Commenting on Nvidia's recent unveiling of its self-driving technology known as Alpamayo, Musk acknowledged that the primary obstacle to widespread deployment lies in the distribution aspect of autonomous driving. This insight reflects the complexity involved not just in developing the technology but in scaling it effectively to broader markets.
Investor Gary Black of Future Fund LLC echoed the importance of collaborative efforts in this domain. He stated that Tesla will not be the sole player in solving the autonomous driving puzzle, especially given Nvidia's Alpamayo breakthrough. Black emphasized that ride-hailing companies such as Uber may play a significant role in democratizing autonomous transportation, suggesting a more diversified ecosystem than Tesla alone.
Moreover, Alphabet Inc., notably through its subsidiary Waymo, continues to make strides in autonomous ride services. Recently, Waymo introduced a new minivan-style autonomous vehicle titled "Ojai," developed in partnership with Chinese automaker Zeekr. This vehicle features Waymo's sixth-generation autonomous hardware, illustrating sustained technological advancement and competitive pressure in the industry's landscape.
From an investment perspective, Tesla demonstrates strong momentum and acceptable quality metrics according to Benzinga's Edge Stock Rankings, although its valuation remains notably high with a weaker value rating. The stock benefits from positive medium- and long-term price trends but faces scrutiny over whether such performance is justifiable given current operational challenges.
At market close on Thursday, Tesla's shares were priced at $435.80, reflecting a modest gain of 1.02%. However, the after-hours session registered a slight decline of 0.14% to $435.21, signifying volatility in the stock's short-term trading dynamics.
Overall, the evolving competition among automotive and technology companies highlights a dynamic and rapidly shifting scene in autonomous vehicle development. Tesla's ambitious promises continue to face skepticism amid operational hurdles and intensifying industry rivalry from established players such as Alphabet and Nvidia, along with collaborative ride-hailing platforms like Uber.