Ross Gerber Backs Rivian Over Tesla Because Of Permanent Brand Damage And This Reason: 'Even If FSD Was Perfect...'
Investor Ross Gerber of Gerber Kawasaki, on Thursday, backed Rivian Automotive Inc. (NASDAQ:RIVN) over Elon Musk-led Tesla Inc. (NASDAQ:TSLA) as his choice in the U.S. EV race.
Rivian Over Tesla
In a post on the social media platform X, Gerber lamented the pivot away from EVs to Physical AI by Tesla. “Sadly Tesla really isn't really in the EV/car business anymore,” he said, adding that there were talks of Tesla delivering 10-20 million electric vehicles at one point. He then said that the situation today was different and that Tesla can now “hope to be the 4th cab company” and pin hopes on the Optimus Humanoid Robot.
“The brand is permanently damaged and even if FSD was perfect, why would consumers take a Tesla branded cab versus Waymo?” he asked. Gerber could likely be alluding to the lack of improvements made by the Full Self-Driving (FSD) system, which, he had earlier said, was still at Level 2 autonomous capability.
In a separate post, Gerber expressed his support for the RJ Scaringe-led automaker over Tesla. “On the other hand, Rivian deliveries were up 30%,” he said, adding that the automaker’s move to bring “tech improvements” and introduction of new models like the upcoming Rivian R2 makes the Illinois-based company “the pure EV play now.”
Gene Munster Weighs In On Tesla Deliveries Miss
Investor Gene Munster of Deepwater Asset Management also weighed in on Tesla’s delivery miss with his “Pressure Points” video.
Munster said that the EV giant’s stock was down because it “slightly missed March delivery expectations.” He then alluded that the miss wasn’t necessarily a headwind for the company, as the figure illustrated that there was an underlying demand. Munster outlined that Tesla’s deliveries “grew without the help of tax credits, and growth going forward should quicken.”
He also said that going forward, Tesla deliveries would continue to grow, except for September, due to the demand being pulled forward as the $7,500 EV credit ended. Munster shared that legacy automakers were scaling back EV efforts, with the investor saying that investments into EVs have been reduced by “an average of 35%,” which could prove to “be costly long-term,” as Munster thinks it would be very difficult to imagine autonomy being “powered by internal combustion engines.”
Gary Black Reaffirms Tesla Position Exit
Elsewhere, Investor Gary Black of The Future Fund LLC has reaffirmed that his decision to exit his position in the EV giant was the “right call” as Tesla deliveries slid and the company’s autonomous driving efforts continue to disappoint. Black also lamented the automaker for refusing to invest in traditional advertising and marketing activities.
On the other hand, Uber Technologies Inc. (NYSE:UBER) CEO Dara Khosrowshahi shared that he hopes to incorporate Tesla’s Robotaxis on the Uber platform someday, provided that the company’s vision-only AV approach becomes safer.
According to Benzinga Edge Rankings, Tesla offers Satisfactory Momentum and Growth.
Price Action: TSLA fell 5.42% to $360.59 at market close on Thursday, but gained 0.19% to $361.26 during the after-hours trading session.
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