Gerber Kawasaki's co-founder Ross Gerber and the Future Fund LLC's managing director Gary Black have both criticized Tesla Inc. (NASDAQ:TSLA) following the launch of affordable Model Y and Model 3 trim levels.
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Ross Gerber Says Elon Musk ‘Pilfered' EV Credit
The investor shared his thoughts on the social media platform X on Tuesday following the announcement by Tesla. "Literally called it. $7500 less good only to eat sales from higher priced models," Gerber said in the initial post. He also criticized Tesla CEO Elon Musk, saying that "the tax credit got pilfered" by Musk himself.
In another post, Gerber doubled down on his criticism. "If you buy this car, cheap model Y/3, you will lose money," Gerber said, adding that Tesla could lower the prices of these trims and that you'd risk paying "$5,000 too much" for the trim levels. "Only lease new teslas. Take this as a warning," Gerber said.
Gerber has been a vocal Tesla and Musk critic in the past, most recently criticizing Tesla for the affordable Model Y as well as warning of a difficult Q4 for the company despite exceeding delivery expectations in Q3.
Gary Black Says It Won't Sell
Black, too, took to the social media platform X to express his criticism of the new affordable Tesla Model Y and its lack of features.
"For $5,000 less, you get lower battery range, less acceleration, cloth seats, no exterior light bars, smaller wheels, no 2nd row touch screen, and cheaper sound system," the investor shared in the post.
He added that while the price tag of below $40k may get customers into the store, "I don't see these selling," Black said in the post.
The investor had earlier said that Tesla's move to offer an affordable Model Y wouldn't enhance the automaker's brand appeal, something that Black says he is a "huge supporter" of.
Tesla scores well on Momentum, Growth and Quality metrics, but offers poor Value. Tesla also offers a favorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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