According to "Business Insider", Ross Gerber (Ross Gerber), once a long-term Tesla investor, has now turned bearish on Tesla. More Tesla shares were sold off in the first quarter. The latest 13F quarterly filing submitted by Gerber's Gerber Kawasaki Wealth and Investment Management Company shows that Gerber continued to be bearish on Tesla and sold more than 26,000 Tesla shares in the first quarter, accounting for more than 10% of its total shareholdings. It was the company's largest stock sell-off in the first quarter.

Gerber is bearish on Tesla

It's unclear at what point in the quarter Gerber's company sold the shares. However,After falling 35% in the first three months of the year, Tesla shares rebounded in the second quarter and are up 52% ​​from their April lows so far., mainly due to Tesla CEO Elon Musk’s announcement that he would quit working in the “Government Efficiency Department” and the stock market rebound triggered by recent good news on tariffs. However, compared with the high point at the end of 2024, Tesla's stock price is still down by about 29%.

Gerber has been reducing his holdings of Tesla stock

In a recent interview with Business Insider, Gerber said he has not been swayed by recent events that have driven up Tesla's stock price. He pointed out,Musk's exit from the Department of Government Efficiency and improvements in U.S.-China trade relations are certainly positive factors, but they cannot change what he sees as the fundamental problems facing Tesla.

Gerber pointed out three major problems that Tesla currently has:

1. Fully autonomous driving (FSD) technology is imperfect.He mentioned issues with FSD reported by some users. Tesla is also currently facing litigation over FSD technology.

2. People don’t buy Teslas.In the first quarter of this year, Tesla sold a total of 128,100 vehicles in the United States, a year-on-year decrease of 8.6%, and a 21% decrease from the same period last year. In the European market, Tesla's monthly sales fell as much as 81% month-on-month.

3. Self-driving taxis face fierce competition.Tesla also faces stiff competition as it launches its self-driving taxi business. Although Tesla plans to launch a ride-hailing service this summer, Gerber believes the company will have a hard time competing against rivals such as Waymo.

Gerber said he doubts Tesla can deliver on all of its promises to investors. "We have obviously not changed our view and will not resume adding to our position in Tesla stock."In fact, I think if they can't actually launch a self-driving taxi business, or at least convince people that this business is indeed moving forward, then the next period may be very difficult for them," he told Business Insider. "

He accurately predicted Tesla's stock price would fall by 50% earlier this year, and his company has sold more than 204,000 Tesla shares in the past two years.

Gerber said he's not convinced by the recent rally in Tesla's stock price. "I've long thought it was overvalued, and I don't care at all if it gets further overrated. We still own a lot of stocks and I can continue to sell them. "He said.

Gerber said Tesla's future is unclear.Tesla may hire a new leader who "can sell cars", or Musk can manage to salvage his image among disappointed customers and repair the brand damage caused by his political forays. He previously told Business Insider that he believed one of the few ways Tesla could get out of its predicament was to change its CEO.

"I think the next six months are going to be the key to their success or failure, so we'll see," Gerber said.